Balloon Payment
: An instance in which the final installation payment on a note is greater than the preceeding payments and pays the note in full.

Balloon Mortgage
Behaves like a fixed-rate mortgage for a set number of years (usually five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.

Best Efforts Delivery
Loan that is price protected with a locked in interest rate and price, and must be delivered within a specified period of time. The Correspondent is expected to use its "best efforts" to close, fund and deliver a rate locked loan on or before the last day of the delivery period.     [TOP]

Borrower
The Person or Persons obligated on the Mortgage Note.

Broker
An individual in the business of assisting in arranging funding or negotiating contracts for a client but who does not loan the money himself. Brokers usually charge a fee or receive a commission for their services.

Business Day
Any day other than (i) a Saturday or Sunday, or (ii) a day on which banking and savings and loan institutions in the state of North Carolina are authorized or obligated by law or executive order to be closed.

Buy Down
The cost to compensate a lender for granting a lower interest rate than the contracted rate