Mortgage Glossary – M
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Margin
The percentage difference between the index for a particular loan and the interest rate charged. This is a number predetermined by the lender.
Mortgage Banker
One who originates home loans, sells them to investors, services monthly payments and handles escrow. Some mortgage bankers sell their loans on the secondary market.
Market Value
The price at which a given property or product sells between a willing, unpressured buyer and seller who know all the pertinent facts about the property or product.
Mixed-Income Housing
A neighborhood whose residents earn widely varying wages and salaries.
Mortgage Refinance
A refinanced mortgage is one in which a borrower pays off an old loan with a new loan. People who refinance a mortgage usually do so to get a lower interest rate, lower their payments or to take cash out of their equity.
Multiple Listing Service (MLS)
A database provided by the Board of Realtors that lists all properties in an area for sale or lease, excluding properties that are being sold directly by their owners without the aid of a real-estate agen.
Mortgage
A legal document by which real property is pledged as security for the repayment of a loan. A lender can take possession of the property if the borrower stops making payments.
Mortgage Banker
An individual or company that originates and/or services mortgage loans.
Mortgage Broker
One that arranges financing for borrowers. A mortgage broker does not make the loan, but receives payments for services.
Mortgage Insurance
Insurance to protect the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home’s appraised value. Also known as MI or PMI (Private Mortgage Insurance).
Mortgage Loan
A loan for which real estate serves as collateral to provide for repayment in case of default.
Mortgage Note
Legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a mortgage or deed of trust or other security instrument.
Mortgagee
The lender in a mortgage loan transaction. Property is used as collateral to secure payment.
Mortgagor
The borrower in a mortgage loan transaction. Property is used as collateral to secure payment.
