A |
B |
C |
D |
E |
F |
G |
H |
I |
J |
K |
L |
M |
N |
O |
P |
Q |
R |
S |
T |
U |
VWXYZmargin
For an adjustable-rate mortgage (ARM), 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.
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.
maximum financing
A mortgage amount that is within 5 percent
of the highest loan-to-value (LTV)
percentage allowed for a specific product.
Thus, maximum financing on a fixed-rate
mortgage would be 90 percent or higher,
because 95 percent is the maximum allowable
LTV percentage for that product.
merged credit report
A credit report that contains information
from three credit repositories. When the
report is created, the information is
compared for duplicate entries. Any
duplicates are combined to provide a summary
of a your credit.
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 fixed installment
That portion of the total monthly payment
that is applied toward principal and
interest. When a mortgage negatively
amortizes, the monthly fixed installment
does not include any amount for principal
reduction.
monthly payment mortgage
A mortgage that requires payments to reduce
the debt once a month.
mortgage
A legal document that pledges a property to
the lender as security for payment of a
debt.
mortgage banker
A company that originates 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 mortgagor'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 (MI).
mortgage insurance premium (MIP)
The amount paid by a mortgagor 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 often bought
by mortgagors. The amount of coverage
decreases as the principal balance declines.
In the event that the borrower dies while
the policy is in force, the debt is
automatically satisfied by insurance
proceeds.
mortgagor
The borrower in a mortgage agreement.
multidwelling units
Properties that provide separate housing
units for more than one family, although
they secure only a single mortgage.
multifamily mortgage
A residential mortgage on a dwelling that is
designed to house more than four families,
such as a high-rise apartment complex.