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
(MI).
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.
