Real Estate Dictionary

A lump sum principal payment due at the end of some mortgages or other long-term loans.

Sometimes known as an offer to purchase or an earnest money receipt. A binder is the acknowledgment of a deposit along with a brief written agreement to enter into a contract for the sale of real estate.

Permanent—prepaid interest that brings the note rate on the loan down to a lower, permanent rate. Temporary—prepaid interest that lowers the note rate temporarily on the loan, allowing the buyer to more readily qualify and to increase payments as income grows.