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BALANCE DUE ON COMPLETION The amount of money a purchaser will be required to pay to the vendor to complete the purchase, after all adjustments have been made. BALLOON PAYMENT This is a final mortgage payment at the end of the term which pays off the outstanding loan in full. The amount of money (principal) required to discharge a mortgage at maturity. BLENDED PAYMENT Equal payments consisting of both principal and interest, paid regularly during the term of the mortgage. BREACH OF CONTRACT Failure to fulfill an obligation under a contract. Breach confers a right of action on the offended party. BRIDGE FINANCING A loan required by a builder to obtain funds during the period between a permanent take out commitment and a construction loan. The construction lender will usually require permanent mortgage commitment to the full amount of the construction loan plus a hold back provision that only the floor amount will be funded at the completion of construction. BUILDING CODES Regulations established by government providing for structural requirements. BUYDOWN A payment to the lender from the seller, buyer or third party causing the lender to reduce the interest rate during the term of the mortgage. |