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Real Estate Glossary
To view a real estate term, click on one of the letters below.
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Margin - For an adjustable-rate mortgage (ARM) or home equity line of credit,
the amount that is added to the index to establish the interest rate on each
adjustment date, subject to any limitations on the interest rate change. The
margin is static and will not change during the life of the loan.
Master Association - A homeowners' association in a large condominium or planned
unit development (PUD) project that is made up of representatives from
associations covering specific areas within the project. In effect, it is a
"second-level" association that handles matters affecting the entire
development, while the "first-level" associations handle matters affecting their
particular portions of the project.
Maturity - The date on which the principal balance of a loan, bond, or other
financial instrument becomes due and payable. At the maturity of a 30-year loan
the principal balance will be paid in full.
Maximum Financing - The maximum amount a lender will lend on a specific loan
program.
Maximum Rate - The maximum interest rate that can accrue on a variable rate loan
Merged Credit Report - A credit report that contains information from more than
one credit reporting agency. When the report is created, the information is
compared for inconsistencies and duplicate entries. Any duplicates are combined
to provide a summary of a your credit.
Minimum Payment - The minimum amount that must be paid monthly on an account. On
the HELOC product, the minimum payment is interest only during the draw period.
On the Fixed Rate Second products, the minimum payment is principal and
interest.
Modification - The act of changing any of the terms of the mortgage.
Money Market Account - A savings account that provides bank depositors with many
of the advantages of a money market fund. Certain regulatory restrictions apply
to the withdrawal of funds from a money market account.
Money Market Fund - A mutual fund that allows individuals to participate in
managed investments in short-term debt securities, such as certificates of
deposit and Treasury bills.
Monthly Debt - A borrower's monthly expenses including credit cards, installment
loans, student loan payments, alimony and child support and housing payment
expense.
Monthly Mortgage Insurance (MI) Payment - Portion of monthly payment that covers
the cost of Private Mortgage Insurance.
Monthly Principal & Interest (P&I) Payment - Portion of monthly payment that
covers the principal and interest due on the loan.
Monthly Taxes & Insurance (T&I) Payment - Portion of monthly payment that funds
the escrow or impound account for taxes and insurance.
Monthly Payment (P&I) - This is the monthly mortgage payment on a home loan,
this includes principal and interest, but excludes any amounts that are applied
to taxes and insurance.
Mortgage - A legal document that pledges a property to the lender as security
for payment of a debt.
Mortgage Banker - A company that originates, sells and services mortgages
exclusively for resale in the secondary mortgage market.
Mortgage Broker - An individual or company that brings borrowers and lenders
together for the purpose of loan origination. Mortgage brokers typically require
a fee or a commission for their services.
Mortgagee - The lender in a mortgage agreement.
Mortgage Insurance - A contract that insures the lender against loss caused by a
borrower's default on a government mortgage or conventional mortgage. Mortgage
insurance can be issued by a private company or by a government agency such as
the Federal Housing Administration (FHA). Depending on the type of mortgage
insurance, the insurance may cover a percentage of or virtually all of the
mortgage loan. See private mortgage insurance (PMI).
Mortgage Insurance Premium (MIP) - The amount paid by a borrower for mortgage
insurance, either to a government agency such as the Federal Housing
Administration (FHA) or to a private mortgage insurance (MI) company.
Mortgage Life Insurance - A type of term life insurance sometimes bought by
borrowers. The amount of coverage decreases as the loan's principal balance
declines. In the event that the borrower dies while the policy is in force, the
debt is automatically satisfied by insurance proceeds. See credit life
insurance.
Mortgagor - The borrower in a mortgage agreement.
Multi-Dwelling Units - Properties that provide separate housing units for more
than one family, although they secure only a single mortgage. Typically a 2-4
unit property.
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