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.
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