Mortgage and Loan Glossary (M)
A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z
MACRS
Modified Accelerated Cost Recovery System.
maintenance
Activities required to compensate for wear and tear on a property.
management fee
The fee charged for professional property management. Usually set at
a fixed percentage of total rental income generated by the managed
property.
margin
On an adjustable-rate mortgage (ARM), the amount 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 sometimes formed in a large condominium project
or planned unit development (PUD) that is made up of representatives
from associations covering specific areas within the project.
maturity
The date on which the principal balance of a financial instrument becomes
due and payable.
maximum financing
Usually, a loan amount that is within 5 percent of the highest loan-to-value
(LTV) percentage allowed for a specific product.
mechanic's lien
A lien on a property issued to secure payment for labor and material
used in construction or improvement of that property.
merged credit report
A credit report that contains information from at least three credit
repositories. Any duplicate entries are combined to provide a concise
summary of a your credit.
MLS
Abbreviation for Multiple Listing Service---a computer database of
properties for sale, maintained by a local real estate board. The
MLS is composed of property descriptions submitted by member brokerages.
monetary policy
Actions by the Federal Reserve System to influence the cost and availability
of credit, with the goals of promoting economic growth, full employment,
price stability and balanced trade with other countries.
money market account
A type of savings account that provides bank depositors with many of
the advantages of a money market fund. Certain regulatory restrictions
may apply to the withdrawal of funds.
money market fund
A mutual fund that allows individuals to participate in managed investments
in short-term debt securities, such as certificates of deposit and
United States Treasury bills.
monthly fixed installment
That portion of a monthly loan payment that is applied toward principal
and interest. When a mortgage loan negatively amortizes, the monthly
fixed installment does not include any amount for the reduction of
principal.
mortgage
A written instrument that pledges a property to the lender as security
for repayment of a debt.
mortgage banker
A company that originates mortgages 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. Mortgage brokers usually charge
a fee or commission for their services.
mortgagee
The lender in a mortgage loan agreement.
mortgage insurance
A contract that insures the lender against loss caused by a borrower's
default on a government mortgage or conventional mortgage. Mortgage
insurance can be issued by a private company (private mortgage insurance
or PMI) or by a government agency such as the Federal Housing Administration
(FHA). See also private mortgage insurance.
mortgage insurance premium (MIP)
Amount paid by a borrower for mortgage insurance, either to a government
agency such as the Federal Housing Administration (FHA) or to a private
mortgage insurance (PMI) company.
mortgage life insurance
A type of term life insurance often bought by mortgagors. In the event
that the borrower dies while the policy is in force, the debt is
automatically repaid by insurance proceeds. Not to be confused with
mortgage insurance.
mortgagor
The borrower in a mortgage agreement. The mortgagor pledges property.
multifamily mortgage
A residential mortgage on a dwelling that is designed to house more
than four families, such as an apartment complex.