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
M
- Mandatory delivery commitment
An agreement that a lender will deliver loans or securities by a certain date at
agreed-upon terms.
- Margin
Rate expressed as a percentage that a lender adds to the index on an adjustable rate loan
to establish the adjusted interest rate.
- Market
value
The highest price that a buyer would pay and the lowest price a seller would accept on a
property. Market value may be different from the price a property could actually be sold
for at a given time.
- 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.
- Maturity
The date on which the principal balance of a loan becomes due.
- Medium-term
notes
Unsecured general obligations of Fannie Mae with maturities of one day or more and with
principal and interest payable in U.S. dollars.
- 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.
- MIP
See Mortgage Insurance Premium.
- Modification
Any change to the original terms of a mortgage.
- 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 and doesn't cover all of the interest. The loan balance
therefore increases instead of decreasing.
- Mortgage
A legal document that pledges property to a lender as security for the repayment of the
loan. The term also is used to refer to the loan itself.
- Mortgage (Open-End)
A mortgage with a provision that permits borrowing additional money in the future without
refinancing the loan or paying additional financing charges. Open-end provisions often
limit such borrowing to no more than would raise the balance to the original loan figure.
- Mortgage-backed security (MBS)
A Fannie Mae security that represents an undivided interest in a group of mortgages.
Principal and interest payments from the individual mortgage loans are grouped and paid
out to the MBS security holders.
- 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.
- 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.
- Mortgagee
The lender.
- Mortgage
insurance
Money paid to insure the mortgage when the down payment is less than 20 percent. See
private mortgage insurance, FHA mortgage insurance.
- Mortage Insurance Premium (MIP)
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.
- Mortgage
note
A written agreement to repay a loan. The agreement is secured by a mortgage, serves as
proof of an indebtedness, and states the manner in which it shall be paid. The note states
the actual amount of the debt that the mortgage secures and renders the mortgagor
personally responsible for repayment.
- Mortgagor
The borrower.
- 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 or homeowner.
- Multifamily
housing
A building with more than four residential rental units.
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
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