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GLOSSARY
Bridge financing
Bridge financing is short-term debt that's collateralized by one asset to fund the purchase of another asset. When the collateral is sold, the debt must be repaid. Bridge financing is used in real estate transactions where a homeowner is purchasing a new home before the old home is sold.
Bridge loan
A bridge loan is the short term source of funds needed to pay for purchase of new property when you have not yet sold your previous property. Thus a bridge loan is taken out to supplement this shortfall in cash reserves for a downpayment. To qualify for this, the borrower must have a contract to sell the exisitng house. It is also known as the swing loan. Bridge loans are not used very often now as the second mortgage lenders lending at high value loans are increasing and sellers prefer offers from buyers who have already sold theri property.
Broker
A professional who is in the business of bringing two parties together and assisting in arranging funds, negotaiting contracts for the clients. He does not lend the money himself but instead earns a fee or commisssion for every transaction that he conducts. Brokers have different meanings for different situations. Realtors are agents who sometimes do their own broking or often work under brokers.
Broker loan
A broker loan is debt extended to an individual or company (the broker) that trades securities on another's behalf. Brokers might use the funds to fund customer margin accounts (where a customer makes an investment purchase on credit) or to fund the broker's own investment purchases.
Broker loan rate
Broker loan rate is the rate of interest, or finance charges, expressed as a percentage of the total debt, that a broker must pay when borrowing money to fund customers' margin accounts.
Broker premium
An amount of money paid to a mortgage broker who has served as a middleman in the mortgage process between the lender and the borrower. Lenders offer brokers wholesale rates and brokers add a surcharge to cover the cost of underwriting.
Broker Price Opinion - BPO
Broker price opinion, or BPO, is the market value of a real estate property, as estimated by a real estate professional. A BPO is not an appraisal; it's an educated determination of value based on sales trends, condition of the property, and recent sales prices of similar properties.
Brokerage
The office of a broker who earns a commission from bringing together a buyer and a seller in real estate or mortgage lending.
Brokerage (brokered) CD
A brokerage, or brokered, CD is a time deposit sold to individual investors by a brokerage firm, and can be traded on the secondary market. An investor might sell the CD prior to maturity without an interest penalty, but the sales price will depend on the time remaining until maturity, as well as other factors.
Brokerage account
A brokerage account is a deposit of securities assets held with a brokerage firm. The brokerage firm is an entity that buys and sells securities, for a fee, on behalf of its customers.
Brokered CD
A brokerage, or brokered, CD is a time deposit sold to individual investors by a brokerage firm, and can be traded on the secondary market. An investor might sell the CD prior to maturity without an interest penalty, but the sales price will depend on the time remaining until maturity, as well as other factors.
Broom clean
Broom clean refers to the desired state of a property that's to be transitioned to a new tenant or buyer. Trash should be picked up and the floors should be swept.
Bubble
In economics, a unsustainable increase in the price of certain products or assets, such as housing or stocks, based on mistaken assumptions about their underlying worth. By definition, bubbles are followed by sharp price declines when the bubble bursts, which is the difference between a bubble and a boom.
Buffer strip
A buffer strip is an area of natural vegetation lying alongside a stream or roadway that helps minimize runoff and erosion.
Builder Upgrades
Refined features and amenities that builders offer for an extra charge.