Glossary of terms used on this site
There are 105 entries in this glossary.M
| Term | Definition |
|---|---|
| Margin |
A constant amount added to the value of the index for the purpose of adjusting the interest rate on an adjustable rate mortgage. |
| Market Value |
The value of a business, property, etc. in terms of what it can be sold for on the open market; current value. |
| Mello Roos |
A special assessment tax that is used to build an infrastructure in newer areas or improve public facilities in older areas. The tax may be phased in over time, paid separate from your regular tax bill, or be included in your regular property tax bill. This tax may not be applicable in your area. |
| Mortgage Backed Securities |
MBS are asset-backed securities whose cash flows are backed by the principal and interest payments of a set of mortgage loans. |
| Mortgage Insurance Premium (MIP) |
An insurance premium homebuyers pay on FHA loans to protect the lender against default. |
| Mortgage Note |
This is a contract that legally pledges the mortgaged property to the lender as collateral for the mortgage loan. The note goes hand in hand with the loan contract and is executed at the same time. The note describes the property, acknowledges the borrower’s obligation to repay the loan and details conditions under which the lender can foreclose the mortgage loan. |
| Mortgagee |
The lender that receives a mortgage in exchange for making a loan. |
| Mortgagor |
The borrower that gives a mortgage to a lender to secure repayment of a loan. |