Margin
The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
Market Value
The value that a willing seller would accept and a willing buyer would offer given a reasonable time for the seller to market a property.
Marketable Title
A title that is free and clear of all liens, clouds or other defects which would prevent the sale of the property.
MIP (Mortgage Insurance Premium)
Insurance purchased by borrower to insure against default on government (FHA or VA) loans.
Monthly Housing Expense
Total monthly expenses of principal, interest, taxes and insurance.
Mortgage
Document creating a lien on a property as security for the payment of a debt.
Mortgage Banker
An entity that originates and funds, then sells and services mortgage loans.
Mortgage Broker
A person or entity that arranges financing for borrowers, but places loans with lenders rather than funding them with broker’s own money.
Mortgage Insurance
Insurance purchased by a buyer to cover the lender’s risk of loss. Lenders generally require mortgage insurance when the down payment is less than 20 percent of the purchase price.
Mortgage Life Insurance
A type of term life insurance often bought by home buyers . The coverage decreases as the mortgage balance declines. If the borrower dies while the policy is in force, the mortgage debt is automatically covered by insurance proceeds.
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.
Mortgagee
The lender in a mortgage loan transaction.
Mortgagor
The borrower in a mortgage loan transaction.