M

Margin
The amount a lender adds to the index on an adjustable rate mortgage 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.

Maturity
The date on which the principal balance of a loan is due and payable.

Minimum payment
The minimum amount that you must pay (usually monthly).

Mortgage
A legal contract that is registered against the title to a property in order to guarantee that a loan will be repaid.

Mortgage banker
A company or loan officer at a bank that originates mortgages for resale in the secondary mortgage market.

Mortgage broker
A person or company that offers loans to borrowers from numerous sources; they're generally paid a commission for their services.

Mortgage Insurance
Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA mortgage insurance.

Mortgage Insurance Premium (MIP)
The one-half percent borrowers pay each month on FHA insured mortgage loans. It is insurance from FHA to the lender against incurring a loss on account of the borrower's default. On September 1, 1983, the MIP was changed to a one-time charge to the borrowers.

Mortgagee
The lender.

Mortgagor
The borrower or homeowner.

Back to Top