margin
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.
|
