Mortgage Terms - "M"

Margin

The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.

Market Value

The most likely price a given property will bring if widely exposed on the market, assuming fully informed buyer and seller.

Marketable Title

Title that is free of liens, clouds on title and legal defects effecting the property

Mechanics Lien

A lien created by statute for the purpose of securing priority of payment for the price of value of work performed and materials furnished in construction of repair of improvements to land, and which attached to the land as well as the improvements.

Mortgage

A lien or claim against real property given as security for a loan.

Mortgage Broker

A professional that helps consumers through the loan selection, processing, and closing a mortgage loan. Most mortgage brokers have access to a wide range of mortgage products through many mortgage lenders. Mortgage brokers are paid a fee by the borrower when a suitable mortgage is found and closed.

Mortgage Guaranty Insurance Corporation (MGIC)

A private corporation which, for a fee, insures mortgage loans similar to FHA and VA insurance, although not insuring as great a percentage of the loan.

Mortgage or Deed of Trust

Written pledge of real property given by the mortgagor to secure a debt. Should be recorded in the County Recorders Office.

Mortgagee

The lender of money or the receiver of the mortgage document.

Mortgage Insurance

Insurance required for loans with a loan ratio above 80%.

Mortgage Note

The document outlining the amount of the debt, the terms and payments, the interest rate, margins and caps for ARMs, the name of the lender and the borrower, and any other material item required by the lender.

Mortgage Warehousing

A funding facility, such as a commercial bank, that is used by mortgage companies to fund loans which are then sold to an investor shortly thereafter. The mortgage notes are used as collateral for this interim financing.

Mortgagor

The borrower of money or the giver of the mortgage document.