Margin
The amount a lender adds to the index of an
adjustable rate mortgage to establish an interest
rate. For example, a margin of 1.50 added to a 7
percent index establishes an interest rate of 8.50
percent. The margin remains the same throughout
the loan.
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.
Market Value
A price or price range generally acknowledged to
be the accepted amount that a buyer would be
willing to pay and a seller would be willing to
accept for a property at a given time. Properties
often sell above or below market value due to
special circumstances in the market or on the part
of a buyer or seller.
Mortgage
A legal instrument in which a lien on real
property is granted as security for the repayment
of a loan. In some states, a deed of trust is used
rather than a mortgage.
Mortgage Banker
An individual or company that originates and/or
services mortgage loans.
Mortgage Broker
An intermediary between a borrower and a lender. A
broker's expertise is to help borrowers find
financing that they might not otherwise find
themselves.
Mortgage Disability Insurance
A disability insurance policy which will pay the
monthly mortgage payment in the event of a covered
disability of an insured borrower for a specified
period of time.
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.
Mortgage Insurance
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 purchase price. (Note, however, that FHA
and VA loans have different insurance guidelines.)
Mortgage Loan
A loan for which real estate serves as collateral
to provide for repayment in case of default.
Mortgage Note
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.
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.
