Mortgage Glossary – M
The percentage difference between the index for a particular loan and the interest rate charged. This is a number predetermined by the lender.
One who originates home loans, sells them to investors, services monthly payments and handles escrow. Some mortgage bankers sell their loans on the secondary market.
The price at which a given property or product sells between a willing, unpressured buyer and seller who know all the pertinent facts about the property or product.
A neighborhood whose residents earn widely varying wages and salaries.
A refinanced mortgage is one in which a borrower pays off an old loan with a new loan. People who refinance a mortgage usually do so to get a lower interest rate, lower their payments or to take cash out of their equity.
Multiple Listing Service (MLS)
A database provided by the Board of Realtors that lists all properties in an area for sale or lease, excluding properties that are being sold directly by their owners without the aid of a real-estate agen.
A legal document by which real property is pledged as security for the repayment of a loan. A lender can take possession of the property if the borrower stops making payments.
An individual or company that originates and/or services mortgage loans.
One that arranges financing for borrowers. A mortgage broker does not make the loan, but receives payments for services.
Insurance to protect the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home’s appraised value. Also known as MI or PMI (Private Mortgage Insurance).
A loan for which real estate serves as collateral to provide for repayment in case of default.
Legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a mortgage or deed of trust or other security instrument.
The lender in a mortgage loan transaction. Property is used as collateral to secure payment.
The borrower in a mortgage loan transaction. Property is used as collateral to secure payment.