Glossary of Mortgage Terms

A biweekly mortgage payment is a way for borrowers to pay back their loans by making half of their monthly mortgage payment every two weeks. This adds up to 26 half-payments a year, which is the same as one extra full payment.

A blanket mortgage is a single loan that covers two or more properties at once. This lets investors and developers manage more than one property with one loan.

A bridge loan is a type of short-term financing that lets homeowners borrow against the equity in their current home to buy a new one before they sell the old one.

Builder's risk insurance is a type of property insurance that protects buildings, materials, and tools from damage or loss during construction or major renovations.

A bungalow is a small, one- or one-and-a-half-story house with a low-pitched roof, an open floor plan, and a wide front porch. It is a popular choice for both first-time home buyers and retirees.

A buyer agency agreement is a written agreement between a home buyer and a real estate agent that lists the services the agent will provide, how long the relationship will last, and how the agent will be paid.

A buyer’s agent is a licensed real estate professional who represents the home buyer’s interests throughout the entire purchase process, from the initial property search through closing day.

A cap rate, which stands for capitalization rate, is a percentage that shows how much money a real estate investment property can make each year compared to what it is worth on the market right now.

A capitalization rate, or cap rate, is the percentage of a rental property's current market value that shows how much money it makes each year. This helps investors figure out how much money they could make.

Cash-on-cash return is a real estate metric that shows how much money you make each year before taxes from an investment property as a percentage of the total cash you put in.