Margin

This is the mathematical difference between interest rate and the adjustable rate mortgage index. The margin stays static for the lifetime of a loan, however the adjustable rate index does fluctuate up and down.

Maturity

This is the date when the balance on the principal is due for a bond, loan or financial contract is due and must be paid on that date.

Merged Credit Report

This is a credit report that contains data from more than one primary credit data sources. This is not the format for a RMCR - the Residential Mortgage Credit report or a basic credit report.

Modification

This occurs when a lending institution adjusts the terms for a mortgage with no refinancing requirement. Changes are referred to a "modification."

Mortgage

This is a legal document that uses property as security for payment of a loan to a lender. Some states use a first trust deed rather than a mortgage.

Mortgage Banker

A mortgage banker is the institution the originates and provides funding for a mortgage loan. The loan is sold on the secondary mortgage market, to Ginnie Mae, Freddie Mac, or Fannie Mae. This term is also used to describe any company in the mortgage business, including mortgage brokers, or other types of lenders.

Mortgage Broker

This is a mortgage company that will originate a loan, then "brokers" the loan with another lending institution.

Mortgagee

In a mortgage agreement, this identifies the lending institution.

Mortgage Insurance ( MI )

Insurance that protects a lender against loss due to a default in payment on a residential home loan. This is not the same as PMI; that is the name of a company that is a mortgage insurer. Lenders require mortgage insurance on loans where the loan, compared to the value of the property, is above 80%. A mortgage above 80% that does not require mortgage insurance, will have a higher interest rate. Payment with the higher interest rate will use some of each payment to purchase mortgage insurance. An FHA loan will require the mortgage insurance for all loans.

Mortgage Insurance Premium ( MIP )

This is the amount paid by a borrower for mortgage insurance. This is paid to a private mortgage insurance company (MI) or to the the a government agency like the FHA.

Mortgage, Life, And Disability Insurance

This is a form of life insurance purchased by a borrower where the face value of the policy goes down as the principal is paid off. This policy may contain a provision for payment if the borrower becomes disabled. If the borrower dies during the life span of the policy the loan is paid off from the insurance policy. If the borrower becomes disabled, the insurance will pay for the mortgage payments. Disability coverage may not begin at the time of disability; there is typically a waiting period.

Mortgagor

In a mortgage agreement, this refers to the borrower.