Title Insurance Dictionary-Glossary

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M

Majority
The age at which a person may handle his or her own affairs.

Margin
The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate.

Margin Call
A call for the deposit of additional funds or collateral to offset trading losses on an outstanding position that is subject to margin.

Mark to the Market
The daily adjustment of margin accounts to reflect the market gain or loss on the position relative to the daily settlement price.

Market Approach to Value
In appraising, the market value estimate is predicated upon actual prices paid in market transactions. It is a process of correlation and analysis of similar recently sold properties.

Market Value
The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.

Marketable Title
Title without defects or claims so as to be readily accepted without fair or reasonable doubt. Compare, INSURABLE TITLE.

Maturity Date
The scheduled date for your final payment on a loan. After making the payment on a loan's maturity date, you assume complete ownership of your home from the lender.

Mechanic's Liens
The right of an unpaid contractor, laborer or supplier to file a lien against property to recover the value of his work

Metes and Bounds
A means of describing land by directions and distances rather than reference to a lot number. Generally used when land has not been subdivided into lots.

MIP (Mortgage Insurance Premium)
An insurance from FHA to the lender against incurring a loss on account of the borrower's default.

Monthly Housing Allowance
The percentage of a person's income they can comfortably use each month to pay for where they live—with enough left over to spend on food, clothing, and other luxuries. As the result of a series of mind-numbing calculations, mortgage experts have determined that most folks can spend approximately 28% of their total income on housing.

Mortgage
A voluntary lien filed against property to secure a debt, usually a loan. It states that if you don't make your payments on the loan in a timely fashion, you may lose your rights to ownership of the home. To foreclose, the lender must often institute a court action and the borrower may have the right to reclaim the property after foreclosure. Compare, DEED OF TRUST.

Mortgage Banker
A firm or individual who originates loans for sale to other investors. The mortgage banker generally continues to service the loans.

Mortgage Banking
The packaging or mortgage loans secured by real property to be sold to a permanent investor with servicing retained for the life of the loan for a fee. The origination, sale, and servicing of mortgage loans by a firm or individual. The investor-correspondent system is the foundation of the mortgage banking industry.

Mortgage Broker
A firm or individual who brings the borrower and lender together, receiving a commission if a sale results. A mortgage broker does not retain servicing.

Mortgage Insurance
Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA mortgage insurance.

Mortgage Portfolio
The aggregate of mortgage loans held by an investor, or serviced by a mortgage banker.

Mortgage Revenue Bond
Bonds issued by public entity payable from revenues derived from repayments of interest on mortgage loans that were financed from the proceeds of bonds.

Mortgage-Backed Securities
Bond-type investment securities representing an undivided interest in a pool of mortgages or trust deeds. Income from the underlying mortgages is used to pay of the securities.

Mortgagee
The lender

Mortgagor
The borrower or homeowner

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