margin
For an adjustable-rate mortgage (ARM), the amount that is added to the index to establish
the interest rate on each adjustment date, subject to any limitations on the interest rate
change. 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. In effect, it is a "second-level" association that handles matters
affecting the entire development, while the "first-level" associations handle
matters affecting their particular portions of the project.
maturity
The date on which the principal balance of a loan, bond, or other financial instrument
becomes due and payable.
money market account
A savings account that provides bank depositors with many of the advantages of a money
market fund. Certain regulatory restrictions apply to the withdrawal of funds from a money
market account.
monthly fixed
installment
That portion of the total monthly payment that is applied toward principal and interest.
When a mortgage negatively amortizes, the monthly fixed installment does not include any
amount for principal reduction.
monthly payment
mortgage
A mortgage that requires payments to reduce the debt once a month.
mortgage
A legal document that pledges a property to the lender as security for payment of a debt.
mortgagee
The lender in a mortgage agreement.
mortgage insurance
A contract that insures the lender against loss caused by a mortgagor's default on a
government mortgage or conventional mortgage. Mortgage insurance can be issued by a
private company or by a government agency such as the Federal Housing Administration
(FHA). Depending on the type of mortgage insurance, the insurance may cover a percentage
of or virtually all of the mortgage loan.
mortgage
insurance premium (MIP)
The amount paid by a mortgagor for mortgage insurance, either to a government agency such
as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI)
company.
mortgage life
insurance
A type of term life insurance often bought by mortgagors. The amount of coverage decreases
as the principal balance declines. In the event that the borrower dies while the policy is
in force, the debt is automatically satisfied by insurance proceeds.
mortgagor
The borrower in a mortgage agreement. |
Equal Housing Lender. © 2007 Abela Group Home Loans, L.L.C. Trade/service marks are the property of Abela Group Home Loans L.L.C., and/or its
subsidiaries. *Loan Approval is subject to satisfactory appraisal and title review and no change in financial condition. If the rate is
not locked or rate protection expires, any rate increase may lower the loan amount for which the borrower has pre-qualified. **Interest Rates
are subject to change without notice. Refinancing or taking out a home equity loan or line of credit may increase the total number of monthly
payments and the total amount paid when comparing to your current situation.