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| • | Margin - (Also called "Spread"). The amount the lender adds to the index to determine the Fully Indexed Accrual Rate. |
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| • | Market Value - The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time. |
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| • | Marketable Title - A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection. |
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| • | 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. |
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| • | Material Debt - Liability that is substantial. The debt results from a recent inquiry and could affect the ratios used to make a decision on the loan. |
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| • | Maturity - The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable. |
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| • | Merged Credit Reports - Information issued by one credit reporting company that receives credit history information from more than one credit repository and combines all of it into one concise format. May be individual or joint. |
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| • | Minimum Down Payment - Minimum down payment is the amount of money you are required to put down at closing. If the minimum is 10%, you must make a down payment of at least $10,000 on a $100,000 house. |
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| • | 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. |
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| • | 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. |
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| • | Monthly Housing Expense - Total principal, interest, taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability. |
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| • | Monthly Payment - The amount paid each month towards the principal and interest amount of a loan. The monthly payment may or may not include taxes and insurance. |
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| • | Monthly Payment (P&I) - The monthly payment amount shown includes only principal and interest. When comparing with other offers please take this into consideration. |
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| • | Monthly Payment Mortgage - A mortgage that requires payments to reduce the debt once a month. |
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| • | Mortgage - A lien or claim against real property given by the buyer to the lender as security for money borrowed. Under government-insured or loan-guarantee provisions, the payments may include escrow amounts covering taxes, hazard insurance, water charges, and special assessments. Mortgages generally run from 10 to 30 years, during which the loan is to be paid off. |
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| • | Mortgage (Open-End) - A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges. Open-end provisions often limit such borrowing to no more than would raise the balance to the original loan figure. |
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| • | Mortgage Banker - A company that originates mortgages exclusively for resale in the secondary market. |
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| • | Mortgage Broker - A person or entity that specializes in loan originations, receiving a commission to match borrowers and lenders. The Mortgage Broker performs some or most of the loan processing functions such as taking loan applications, ordering credit reports, appraisals, and title reports. Typically the Mortgage Broker does not underwrite the loan and generally does not use its own funds for closing. The Mortgage is generally closed in the name of the lender who commissioned the broker's services. A Mortgage Broker will not service the Mortgage. An entity or individual engaged to handle or perform, for a Seller or correspondent, part of the mortgage application processing, underwriting, funding or postclosing functions, but not any activities related to obtaining an application for a wholesale origination. This entity is typically paid on a fee basis for services performed, with the payment of fees not being contingent on Mortgage approval or closing. |
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| • | Mortgage Commitment - A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house. |
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| • | Mortgage Insurance - Money paid to insure the mortgage when the down payment is less than 20 percent. |
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| • | Mortgage Insurance Premium - The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one-half of one percent paid by the mortgagor on a monthly basis. |
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| • | 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. |
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| • | Mortgage Note - A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment. |
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| • | Mortgagee - The lender. |
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| • | Mortgagor - The borrower or homeowner. |
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| • | Multi-Dwelling Units - Properties that provide separate housing units for more than one family, although they secure only a single mortgage. |
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| • | Multifamily Mortgage - A residential mortgage on a dwelling that is designed to house more than four families, such as a high-rise apartment complex. |
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| • | Multiple Listing Service (MLS) - A computer database that compiles information on houses listed for sale in a particular area by participating real estate agents. It is maintained and accessed by agents who use the listings to match their clients' needs with property descriptions on the database. |
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