M

Margin
In an adjustable rate mortgage, the amount added to the interest rate index, to calculate the new indexed interest rate. Also, borrowing money from a broker to purchase securities.

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 Timing
Shifting money in and out of investment markets in an effort to take advantage of rising prices and avoid downturns.

Market Value
The price at which buyers are willing to buy and sellers are willing to sell.

Master Association
A homeowners' association in a large condominium or planned unit development (PUD) project that is made up of representatives from associations covering specific areas within the project.

Maturity
The date a debt is due for payment.

Maximum Financing
The maximum amount a lender will lend on a specific loan program.

Maximum Rate
The maximum interest rate that can accrue on a variable rate loan

Mechanic's Lien
A claim created by law for the purpose of securing priority payment for work performed and material furnished by a mechanic or other person who has done construction or repair of a building. Such a claim attaches to the land as well as buildings and improvements erected on land.

Merged Credit Report
A credit report that contains information from more than one credit reporting agency. When the report is created, the information is compared for inconsistencies and duplicate entries. Any duplicates are combined to provide a summary of a your credit.

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

Misrepresentation
Information that is provided to and is relied upon by a third party as fact, but that is untrue and material to the risk assumed. The information may be provided with the knowledge that it is untrue and with the intent to deceive, or provided as the truth without knowing for a fact that it is not true.

Modification
The act of changing any of the terms of the mortgage.

Monthly Debt
A borrower's monthly expenses including credit cards, installment loans, student loan payments, alimony and child support and housing payment expense.

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

Monthly Mortgage Insurance (MI) Payment
Portion of monthly payment that covers the cost of Private Mortgage Insurance.

Monthly Payment
The monthly amount of principal and interest collected by mortgage lenders. May also include taxes and insurance.

Monthly Periodic Rate
The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the annual percentage rate divided by 12.

Monthly Principal & Interest (P&I) Payment
Portion of monthly payment that covers the principal and interest due on the loan.

Monthly Taxes & Insurance (T&I) Payment
Portion of monthly payment that funds the escrow or impound account for taxes and insurance.

Mortgage
A loan secured by real estate, where the borrower allows the lender a lien on the property as security until the loan is repaid

Mortgage Banker
A company that originates, sells and services mortgages exclusively for resale in the secondary mortgage market.

Mortgage Broker
An individual or company that brings borrowers and lenders together for the purpose of loan origination. Unlike a mortgage banker, brokers do not fund the loan but work on behalf of several lenders. Brokers typically require a fee or a commission for their services.

Mortgage Commitment
An agreement between the borrower and the lender to disburse a mortgage loan at a future date if specified terms and conditions are satisfied.

Mortgagee
The institution, group or individual that lends money on the security of pledged real estate; the association, the lender.

Mortgage Guaranty Insurance
Insurance written by an independent mortgage guaranty insurance company that protects the mortgage lender against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sales price. The federal government writes this form of insurance through the Federal Housing Administration (FHA) and the Veterans Administration (VA).

Mortgage Guaranty Insurance Premium
The amount paid by a mortgage for mortgage guaranty insurance either to the FHA or a private mortgage guaranty insurance company.

Mortgage Insurance
Insurance that protects the lender against loss in the event a mortgage borrower defaults. Also called private mortgage insurance.

Mortgage Lender
A classification used to describe those institutions or organizations at least partially engaged in the primary mortgage market – that is, extending funds directly to the borrower.

Mortgage Note
A written promise to pay a sum of money at a state interest rate during a specified term. It is usually secured by a mortgage.

Mortgage Verification (VOM)
A form sent by lenders to verify the balance and repayment history of borrowers for mortgage application.

Mortgagor
The borrower in a mortgage agreement.

Multi-Dwelling Units
Properties that provide separate housing units for more than one family, although they secure only a single mortgage. Typically a 2-4 unit property.

Multifamily Mortgage
A dwelling that contains more than four units (an apartment building).

Multiple Borrowers
Two or more borrowers who are not husband and wife.