|
|
 |
 |
|
|
|
|
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.
|
|
|
|
Mortgage Banker |
A company that originates mortgages exclusively for resale in the secondary mortgage
market. |
|
|
|
|
|
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. |
|
|
|
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.
|
|
|
|
|
|
Maturity |
The date on which the principal balance of a loan, bond, or other financial instrument
becomes due and payable.
|
|
|
|
Mortgagee |
The lender in a mortgage agreement.
|
|
|
|
|
|
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.
|
|
|
|
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. |
|
|
|
|
|
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.
|
|
|
|
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.
|
|
|
|
|
|
Modification |
The act of changing any of the terms of the mortgage. |
|
|
|
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. |
|
|
|
|
|
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.
|
|
|
|
Mortgagor |
The borrower in a mortgage agreement.
|
|
|
|
|
|
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.
|
|
|
|
Multidwelling Units |
Properties that provide separate housing units for more than one family, although they secure only a single 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.
|
|
|
|
Multifamily Mortgage |
A residential mortgage on a dwelling that is designed to house more than four families,
such as a high-rise apartment complex.
|
|
|
|
|
|
Monthly Payment Mortgage |
A mortgage that requires payments
to reduce the debt once a month. |
|
|
|
Multifamily Properties |
Fannie Mae provides financing for multifamily (buildings with five or more units)
rental properties through a nationwide network of mortgage lenders.
|
|
|
|
|
|
Mortgage |
A legal document that pledges a property to the lender as security for payment of
a debt. |
|
|
|
|
|
|
|
Back to Index >>
|
|
|