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| M |
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| Margin |
| The amount a lender adds to the index on an
adjustable rate mortgage to establish the adjusted interest rate. |
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| 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. |
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| Maturity |
| The date on which the principal balance of a loan
becomes due and payable. |
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| MIP (Mortgage Insurance Premium)
|
| It is insurance from FHA to the lender against
incurring a loss on account of the borrower's default. |
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| 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. |
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| Mortgage
|
| A legal document that pledges a property to the
lender as security for payment of a debt. |
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| Mortgage Banker |
| A company that originates mortgages exclusively
for resale in the secondary mortgage market. |
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| Mortgage Broker
|
| An individual or company that charges a service
fee to bring borrowers and lenders together for the purpose of loan
origination. |
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| Mortgagee |
| The lender. |
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| Mortgage Insurance
|
| Money paid to insure the mortgage when the down
payment is less than 20 percent. See private mortgage insurance, FHA mortgage
insurance. |
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| Mortgage Life Insurance
|
| A type of term life insurance In the event that
the borrower dies while the policy is in force, the debt is automatically paid
by insurance proceeds. |
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| Mortgagor |
| The borrower or homeowner. |
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