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Glossary
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Margin -
The amount a lender adds to the quoted index rate for an adjustable rate loan to determine the new interest rate.
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Maturity -
The "Due Date" of a loan.
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Merged Credit Report -
A credit report that reports data from two or more major credit repositories.
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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.
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Modification -
Any change to the original terms of a mortgage.
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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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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.
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Mortgagee -
The lender in a mortgage agreement.
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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.
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Mortgage Broker -
A mortgage company that originates loans, joining the borrower and lender for a real estate loan, earning a placement fee.
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Mortgage Constant -
The factor used for rapid computation of the annual payment needed to amortize a loan.
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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.
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Mortgagor -
The borrower in a mortgage agreement.
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Multidwelling Units -
Properties that provide separate housing units for more than one family, although only a single mortgage is secured.
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