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.
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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