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Houston Mortgage > Glossary >
Real Estate > B 1-10
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Balloon payment
A scheduled payment due at the end of a loan term that is substantially greater than the regular monthly payments. This may be a very large payment. It is designed to occur when the regular payments do not pay off all interest and principal owing (not fully amortizing) on the loan over the term of the loan.
Borrower
A person who receives funds in the form of a loan with the obligation to repay the loan in full.
Broker Agreement (Mortgage Broker Agreement)
A contract between a borrower and a mortgage broker. It describes what the broker will do for the borrower, and the terms of the agreement, including compensation.
Broker Compensation or Fee
The amount of money the broker will receive for finding a loan for a borrower. This may be an amount paid by the borrower, an amount paid by the lender or a combination of the two.
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