Glossary

An oversized payment due at the end of a mortgage, commercial loan or other amortized loan. Because the entire loan amount is not amortized over the life of the loan, the remaining balance is due as a final repayment to the lender. Balloon payments are often prepackaged into what are called _two-step mortgages. _ In this type of mortgage, the balloon payment is rolled into a new or continuing amortized mortgage at the prevailing market rates. Balloon payments can occur within a fixed-rate or adjustable-rate mortgage.

1/100th of 1% expressed as a margin over an index rate.

The legal form under which property is owned.

A Bridge Loan is generally a short term loan that is used by business borrowers until a longer term loan can be arranged or a scheduled event occurs which provides the funds to repay the loan. Bridge loans may be used to, among other things, acquire real estate, make improvements, put tenants in place, etc. Bridge Loans may also be referred to as Interim Loans and generally carry higher interest rates and fees than Conventional Loans or Permanent Loans (Permanent Mortgage Loan).

A short-term or interim loan for borrowers who need more time to find permanent financing or are repositioning a commercial property.

A document, issued by government regulatory authority that allows a builder to construct or modify a structure.

The usable square footage of the building.

A business credit report is a profile of your business that contains critical information such as payment history that lenders examine when evaluating a business loan application. Dun & Bradstreet (D&B) is a well known for issuing business reports.

A commercial loan that generally provides for working capital needs of a business. A working capital line (loan) is generally revolving, which means that the business can draw down on the line up to the authorized amount, repay any amount borrowed and re-draw funds as needed during the time that the Line" is in place. It may be secured by collateral or unsecured. "

The process of determining the economic value of a business or of a medical, dental, legal or similar practice. Business valuation can be used to determine the fair value of a business for a variety of reasons, including sale value, financing, establishing partner ownership and divorce proceedings. Often times, owners will turn to professional business valuation companies for an objective estimate of the business value.