| 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. |
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| Marginal Land |
Property which is barely profitable to use. |
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| Market Value |
The highest price which a ready, willing and able buyer would
pay and a willing seller will accept, both being fully informed under no
pressure to act. The market value may be different from the price a property
can actually be sold for at a given time (market price). |
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| Market Approach to Value |
An estimate of value based on the actual sales prices of
comparable properties. |
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| Marketable Title |
A title that is free and clear of objectionable liens, clouds,
or other title defects. A title that enables an owner to sell his property
freely to others and which others will accept without objection. |
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| 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. |
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| 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. |
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| Maximum Rate |
The maximum interest rate that can accrue on a variable rate
loan |
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| Maximum Financing |
The maximum amount a lender will lend on a specific loan
program. |
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| Mechanics Lien |
A lien created by statue for the purpose of securing priority
of payment for the price of value of work performed and materials furnished in
construction of repair of improvements to land, and which attached to the land
as well as the improvements. |
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| 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. |
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| Metes and Bounds |
A system of land description using distance (metes) and
angles/compass directions (bounds), beginning and ending at the same point.
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| Minimum Payment |
The minimum amount that you must pay, usually monthly, on a
home equity loan or line of credit. In some plans, the minimum payment may be
"interest only," (simple interest). In other plans, the minimum
payment may include principal and interest (amortized). |
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| Minority |
As defined in the Civil Rights Act of 1968 as part of the Fair
Housing Laws "'minority' means any group, or any member of a group, that
can be identified either: (1) by race, color, religion, sex, disability, or
national origin; or (2) by any other characteristic (such as familial status)
on the basis of which discrimination is prohibited by a federal, state, or
local fair housing law. |
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| MIP (Mortgage Insurance Premium ) |
The insurance issued by a government agency such as the FHA
Mortgage Banker A company that originates mortgages exclusively for resale in
the secondary market. |
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| Misrepresentation |
A false statement, or concealment, of material fact with the
intention of inducing action of another. |
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| MLS |
Multiple Listing Service; a means by which agents are informed
of the properties offered for sale by other agents |
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| Modification |
The act of changing any of the terms of the mortgage. |
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| 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. |
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| 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. |
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| Monthly Payment |
Usually, the amount of PITI (principal, interest, taxes, and
insurance) paid each month on a mortgage loan. |
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| Monthly Mortgage Insurance (MI) Payment |
Portion of monthly payment that covers the cost of Private
Mortgage Insurance. |
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| 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. |
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| Monthly Taxes & Insurance (T&I) Payment |
Portion of monthly payment that funds the escrow or impound
account for taxes and insurance. |
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| Monthly Debt |
A borrower's monthly expenses including credit cards,
installment loans, student loan payments, alimony and child support and housing
payment expense. |
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| Monument |
A fixed object or point, either natural or man-made, used in
making a survey. |
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| Mortgage Broker |
An individual or company that for a fee acts as an
intermediary between borrowers and lenders. |
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| Mortgage Pre-Approval Service |
A service offered by many lenders that allows you to qualify
for financing before finding a property to buy. |
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| Mortgage Loan |
A loan which utilizes real estate as security or collateral to
provide for repayment should you default on the terms of your loan. The
mortgage or Deed of Trust is your agreement to pledge your home or other real
estate as security. |
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| Mortgage Note |
A written promise to pay a sum of money at a state interest
rate during a specified term. The note contains a complete description of the
conditions under which the loan is to be repaid and when it is due. |
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| 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. |
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| Mortgage Insurance Premium (MIP) |
The consideration paid by a mortgagor (borrower) for mortgage
insurance -either to the FHA or to a private mortgage insurer. |
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| Mortgage Insurance |
An insurance policy that protects the lender against financial
risk if the buyer defaults on the mortgage. |
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| Mortgage Warehousing |
A system whereby a mortgage company will hold loans which
would ordinarily be sold, in order to sell later at a lower discount. These are
used as collateral security with a bank to borrow new money to loan. |
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| Mortgage Pre-Approval Service |
A service offered by many lenders that allows you to qualify
for financing before finding a property to buy. |
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| 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. |
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| 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). |
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| Mortgage Guaranty Insurance Corporation (MGIC) |
A private corporation which, for a fee, insures mortgage loans
similar to FHA and VA insurance, although not insuring as great a percentage of
the loan. |
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| Mortgage (Open-End) |
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 |
An individual or company that obtains mortgages for others by
finding lending institutions, insurance companies or private sources to lend
the money. The mortgage broker may also handle collections and disbursements.
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| Mortgage or Deed of Trust |
Written pledge of real property given by the mortgagor to
secure a debt. Should be recorded in the County Recorders Office. |
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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 Banker |
A company that originates mortgages exclusively for resale in
the secondary market. |
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| Mortgage Commitment |
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 Premium (MIP) |
The fee paid by a borrower to FHA or a private insurer for
mortgage insurance. |
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| Mortgage Interest Rate |
The rate of interest in effect for the monthly payment due.
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| Mortgagee |
The lender of money or the receiver of the mortgage document.
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| Mortgagor |
The borrower in a mortgage transaction who pledges property as
security for a debt. |
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| 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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| Multiple Listing Service (MLS) |
Multiple Listing is the name given a service performed by the
Local Board of Realtors (Multiple Listing Service). MLS provides necessary
information to aid in the sale of listings. It is a marketing tool used by
members of the Service to expose properties to a wider market base. |