Margin - The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
Market Price - The price of a property brings in a given market.
Market Value - The highest price a ready, willing, and able buyer, not forced to buy, will pay to a ready, willing, and able seller, not forced to sell, allowing a reasonable time for exposure in the open market.
Marketable Title - Title which can be readily marketed (sold) to a reasonably prudent purchaser aware of the facts and their legal meaning concerning liens and encumbrances.
Mechanic's Lien - A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land and which attaches to the land as well as the improvements.
Mortgage - An instrument in writing which, when recorded, creates a lien upon property pledged as security for the repayment of a debt or obligation.
Mortgage Banker - A company or individual engaged in the business of originating mortgage loans with its own funds, selling those loans to long-term investors and servicing the loans for the investor until they are paid in full.
Mortgage Broker - Sometimes called a loan officer is a licensed professional who gathers and processes paperwork associated with mortgaging real estate. A loan officer acts as the conduit between buyer and lender.
Mortgage Insurance - Insurance written by an independent mortgage insurance company protecting the mortgage broker against loss incurred by a mortgage default, thus enabling the lender to lend a higher percentage of the sale price. The Federal government writes this form of insurance through the FHA and VA.
Mortgage Life Insurance - A type of term life insurance often bought by mortgagors. The coverage decreases as the mortgage balance declines. If the borrower dies while the policy is in force, the debt is automatically covered by insurance proceeds.
Mortgagee - The party who lends money and accepts a mortgage to secure the payment of the debt.
Multiple Listing Service (M.L.S.) - An arrangement among brokers whereby they share their listings.
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