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
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.
MULTI-DWELLING UNITS
Properties that provide separate housing units for more than
one family, although they secure only a single mortgage.
MULTI-FAMILY 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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