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GLOSSARY OF MORTGAGE TERMS:
Page 1 of 2 | 21 terms beginning with 'M' Margin (Also called "Spread"). The amount the lender adds to the index to determine the Fully Indexed Accrual Rate. Marketable Title A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection. 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. 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 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 Housing Expense Total principal, interest, taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability. 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 a payment of a debt. Mortgage Banker A company that originates mortgages exclusively for resale in the secondary market. Mortgage Broker A company that for a fee matches borrowers with lenders. 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. Mortgage Insurance Premium The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one-half of one percent paid by the mortgagor on a monthly basis. |