Mortgage and Real Estate Glossary

Real Estate Definitions and Terms: M

Offers a Mortgage and Real Estate glossary for real estate and mortgage terms and definitions for home buyers, home sellers, and real estate consumers. Find expanded definitions of important real estate and mortgage home loan terms.

Please select the first letter of the mortgage or real estate word you are looking for and then scroll the listing below to find that word.

Definitions and Terms: M

Margin - The amount a lender adds to the quoted index rate for an adjustable rate loan to determine the new interest rate.

Maturity - The "Due Date" of a loan.

Merged Credit Report - A credit report that reports data from two or more major credit repositories.

Minimum Credit - This field on the table refers to the minimum credit rating a borrower must have in order to qualify for the listed loan.

Modification - Any change to the original terms of a mortgage.

Monthly Housing Expense - Total principal, interest, taxes, and insurance paid by the borrower on a monthly basis. Used with gross income to determine affordability.

Mortgage - A legal document that pledges property to a creditor for the repayment of the loan, and is the term used to describe the loan itself. Some states use the term First Trust Deeds to refer to mortgage loans.

Mortgagee - The lender in a mortgage agreement.

Mortgage Banker - A financial intermediary that originates or funds loans, collects payments, inspects the property, and forecloses if necessary. The main difference between a mortgage banker and a loan officer is a banker funds their own loans and sell them on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginny Mae.

Mortgage Broker - A mortgage company that originates loans, joining the borrower and lender for a real estate loan, earning a placement fee.

Mortgage Constant - The factor used for rapid computation of the annual payment needed to amortize a loan.

Mortgage Insurance - Insurance that covers the lender against losses incurred as a result of a default on a home loan. This is usually required on all loans that have a loan-to-value higher than eighty percent. Mortgages that have an 80% LTV that do not require mortgage insurance have higher interest rates. The lenders then pay the mortgage insurance themselves. In addition, FHA loans and some first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.

Mortgage Insurance Premium (MIP) - Monthly payment -usually part of the mortgage payment - paid by a borrower for mortgage insurance.

Mortgage Modification - loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments.

Mortgagor - The borrower in a mortgage agreement.

Multi-dwelling Units - Properties that provide separate housing units for more than one family, although only a single mortgage is secured.