Below is a mortgage glossary of terms. There may be words listed that no longer apply in todays market. Please call us if you have any questions.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Margin -
The amount a lender adds to the quoted index rate for an adjustable rate loan to determine the new interest rate.

Maturity -
The "Due Date" of a loan.

Merged Credit Report -
A credit report that reports data from two or more major credit repositories.

Modification -
Any change to the original terms of a mortgage.

Monthly Housing Expense -
Total principal, interest, taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability.

Mortgage -
A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans.

Mortgagee -
The lender in a mortgage agreement.

Mortgage Banker -
A financial intermediary that originates or funds loans, collects payments, inspects the property, and forecloses if necessary. The main difference between a mortgage banker and a loan officer is a banker funds their own loans and sell them on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginny Mae.

Mortgage Broker -
A mortgage company that originates loans, joining the borrower and lender for a real estate loan, earning a placement fee.

Mortgage Constant -
The factor used for rapid computation of the annual payment needed to amortize a loan.

Mortgage Insurance -
Insurance that covers the lender against losses incurred as a result of a default on a home loan. This is usually required on all loans that have a loan-to-value higher than eighty percent. Mortgages that have an 80% LTV that do not require mortgage insurance have higher interest rates. The lenders then pay the mortgage insurance themselves. In addition, FHA loans and some first-time home buyer programs require mortgage insurance regardless of the loan-to-value.

Mortgagor -
The borrower in a mortgage agreement.

Multi dwelling Units -
Properties that provide separate housing units for more than one family, although only a single mortgage is secured.