Frost Mortgage Banking Group Glossary of Terms

A financial statement that shows assets, liabilities, and net worth as of a specific date.

A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term. The principal and interest on the loan are amortized over a longer period than the actual term of the mortgage.

The final lump sum payment that is made at the maturity date of a balloon mortgage.

A person, firm, or corporation that, through a court proceeding, is relieved from the payment of all debts after the surrender of all assets to a court-appointed trustee.

A proceeding in a federal court in which a debtor who owes more than his or her assets can relieve the debts by transferring his or her assets to a trustee.

Income before taxes are deducted.

The person designated to receive the income from a trust, estate, or a deed of trust.

To transfer personal property through a will.

An improvement that increases property value as distinguished from repairs or replacements that simply maintain value.

A written document that transfers title to personal property.

A preliminary agreement, secured by the payment of an earnest money deposit, under which a buyer offers to purchase real estate.

A mortgage that requires payments to reduce the debt every two weeks (instead of the standard monthly payment schedule). The 26 (or possibly 27) biweekly payments are each equal to one-half of the monthly payment that would be required if the loan were a standard 30-year fixed-rate mortgage, and they are usually drafted from the borrower’s bank account. The result for the borrower is a substantial savings in interest.

A single policy that covers more than one piece of property (or more than one person).

The mortgage that is secured by a cooperative project, as opposed to the share loans on individual units within the project.

In good faith, without fraud.

Bankruptcy

Before-Tax Income

Beneficiary

Bequeath

Betterment

Bill Of Sale

Binder

Biweekly Payment Mortgage

Blanket Insurance Policy