Glossary M   A B C D E F G H I J K L

Margin - The number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period.

Maximum Financing - Usually, a loan amount that is within 5 percent of the highest loan-to-value (LTV) percentage allowed for a specific product.

Monthly Payment -The monthly payment required to pay back your equity loan is calculated in accordance with the program you selected. In the case of the 15 year fixed rate or balloon loan, the monthly payment will not change during the term of the loan. If you choose an equity line of credit, the monthly payment is calculated based on the balance due.

Mortgage - The legal document used by a borrower to pledge their property as security in order to obtain a loan. In some areas of the country, the mortgage is called a "deed of trust."

Mortgage Banker - A company that originates mortgages for resale in the secondary mortgage market.

Mortgage Insurance - Insurance provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. The borrower usually pays the cost of the insurance and is most often required if the loan amount is more than 80% of the home's value. Sometimes referred to as private mortgage insurance.

Mortgage Insurance Premium (MIP) - Amount paid by a borrower for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (PMI) company.

Mortgage Registration Fee - A fee or tax charged by some state and local governments when a mortgage is obtained. The mortgage registration fee is considered to be a tax and other unavoidable fee.

Mortgagee - The person or company who provides the loan funds to the borrower.

Mortgagor - The person who receives funds from a lender in exchange for a security interest in the property. Commonly known as the borrower.

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