Glossary
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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. Merged Credit Report
A credit report that contains information from the three major, nationwide credit repositories. When the report is created, the information is compared for duplicate entries. Any duplicates are combined to provide a summary of your credit. Modification
The act of changing any of the terms of the 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. 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
An individual or company that originates Business 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. See broker.
Mortgage Lender
Person who lends money to a borrower at a particular interest rate to be repaid at a later date. Mortgagee
The lender in a mortgage agreement. Mortgage Insurance (MI)
A contract that insures the lender against loss caused by a borrower's default on a government mortgage or conventional mortgage. Most lenders generally require MI for a loan with a loan-to-value (LTV) greater than 80%. Mortgage insurance can be issued by a private company (such as MGIC) 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 the entire mortgage loan. Mortgage Insurance Premium (MIP)
The amount paid by a borrower for mortgage insurance, either to a private mortgage insurance (MI) company, such as GE or to a government agency such as the Federal Housing Administration (FHA). Mortgage Life Insurance
A type of term life insurance paid by borrowers. 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. Mortgage Loan
A loan secured by real property. Mortgage Origination Fee
See origination points . Mortgage Payment
The monthly payment of principal and interest required by a mortgage loan. 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. |
