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| Term |
Definition |
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Margin
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The amount a lender adds to the index on an adjustable rate mortgage to
establish the adjusted interest rate.
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Market Value
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The highest price that a buyer would pay and the lowest price a seller
would accept on a property. Market value may be different from the price a property could actually
be sold for at a given time.
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Marketable Title
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A title that is free and clear of objectionable liens, clouds, or
other title defects. A title which enables an owner to sell his property freely
to others and which
others will accept without objection.
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Material Debt
|
Liability that is substantial. The debt results from a recent inquiry
and could affect the ratios used to make a decision on the loan.
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| Mechanic's Lien |
Lien given by law upon a building or other improvement upon land, and upon the land itself, as security for the payment for labor done and materials furnished for improvement.
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Merged Credit Reports
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Information issued by one credit reporting company that receives credit
history information from more than one credit repository and combines all
of it into one concise format. May be individual or joint.
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Minimum Down Payment |
Minimum down payment is the amount of money you are required to put down
at closing. If the minimum is 10%, you must make a down payment of at least
$10,000 on a $100,000 house. |
| Modification |
A change of the terms of the loan agreement. |
|
Monthly Payment
|
The amount paid each month towards the principal and interest amount of a
loan. The monthly payment may or may not include taxes and insurance.
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Monthly Payment (P&I)
|
The monthly payment amount shown includes only principal and interest. When comparing with other offers
please take this into consideration.
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Mortgage
|
A lien or claim against real property given by the buyer to the lender
as security for money borrowed. Under government-insured or loan-guarantee provisions, the payments
may include escrow amounts covering taxes, hazard insurance, water charges, and special
assessments. Mortgages generally run from 10 to 30 years, during which the loan is to be paid
off.
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Mortgage (Open-End)
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A mortgage with a provision that permits borrowing additional money
in the future without refinancing the loan or paying additional financing charges. Open-end
provisions often limit such borrowing to no more than would raise the balance to the original loan
figure.
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Mortgage Broker
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A person or entity that specializes in loan originations, receiving a
commission to match borrowers and lenders. The Mortgage Broker performs
some or most of the loan processing functions such as taking loan
applications, ordering credit reports, appraisals, and title reports.
Typically the Mortgage Broker does not underwrite the loan and generally
does not use its own funds for closing. The Mortgage is generally closed
in the name of the lender who commissioned the broker's services. A
Mortgage Broker will not service the Mortgage.
An entity or individual engaged to handle or perform, for a Seller or
correspondent, part of the mortgage application processing, underwriting,
funding or postclosing functions, but not any activities related to
obtaining an application for a wholesale origination. This entity is
typically paid on a fee basis for services performed, with the payment
of fees not being contingent on Mortgage approval or closing.
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Mortgage Commitment
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A written notice from the bank or other lending institution saying it
will advance mortgage funds in a specified amount to enable a buyer to
purchase a house.
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Mortgage Insurance
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Money paid to insure the mortgage when the down payment is less than 20
percent.
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Mortgage Insurance Premium
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The payment made by a borrower to the lender for transmittal to HUD to
help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect
lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an
annual rate of one-half of one percent paid by the mortgagor on a monthly basis.
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Mortgage Note
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A written agreement to repay a loan. The agreement is secured by a
mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The
note states the actual amount of the debt that the mortgage secures and renders the mortgagor
personally responsible for repayment.
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Mortgagee
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The lender.
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Mortgagor
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The borrower or homeowner. |
| Multiple Listing Service (MLS) |
Association of real estate brokers that agrees to share listings with one another. The listing broker and the selling broker share the commission. The MLS usually distributes a book with all listings to its members, updating the book frequently. Prospective buyers benefit from the ability to select from amongst many homes listed by any member broker.
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