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home :: Mortgage Terms
Glossary M
Mortgage Terms Glossary
M
Maintenance costs: the cost of the
upkeep of the house. These costs may be minor in cost and nature
(replacing washers in the faucets) or major in cost and nature (new
heating system or a new roof) and can apply to either the interior
or exterior of the house.
Margin: an amount the lender adds to an
index to determine the interest rate on an adjustable rate
mortgage.
Market value: The price a property can
realistically sell for, based upon comparable selling prices of
other properties in the same geographical area.
Modification: a change in the terms of
the mortgage note, such as a reduction in the interest rate or a
change in maturity date.
Mortgage: A legal instrument in which
property serves as security for the repayment of a loan. In some
states, a deed of trust is used rather than a mortgage.
Mortgage banker: a company that
originates loans and resells them to secondary mortgage lenders like
:Fannie Mae or Freddie Mac.
Mortgage broker: a firm that originates
and processes loans for a number of lenders.
Mortgage insurance: a policy that
protects lenders against some or most of the losses that can occur
when a borrower defaults on a mortgage loan; mortgage insurance is
required primarily for borrowers with a down payment of less than
20% of the home's purchase price.
Mortgage insurance premium (MIP): a
monthly payment -usually part of the mortgage payment - paid by a
borrower for mortgage insurance.
Mortgage interest: the interest rate
charge for borrowing the money for the mortgage. It is used to
calculate the interest payment on the mortgage each month.
Mortgage Modification: a loss
mitigation option that allows a borrower to refinance and/or extend
the term of the mortgage loan and thus reduce the monthly payments.
Mortgage term: the length of time that
a mortgage is scheduled to exist. Example: a 30-year mortgage term
is for 30 years.
Mortgagee: the lender.
Mortgagor: the borrower.
Related
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Private Mortgages
Take Over Mortgage
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