Daily
Magazine
Real Estate Courses
Real
Estate Appraising
Creative Lenders
|
 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
M
Management Agreement:
A contract between the owner of property and someone who agrees to manage
it. Margin:
A constant (fixed) amount over an index that determines a lender's yield
on an adjustable rate loan. The interest rate of an adjustable rate loan is
determined by adding a margin to an index. The size of the margin is typically a
function of the index used and the credit worthiness of the borrower. Typical
margins on a Prime Rate based loan would be 0.0 to 5.0 so that if the Prime Rate
were 8.25% and the margin were 2.0 (typical for an "average" borrower); the
interest rate would be 10.25% (8.25 + 2.0). (See definition of "index" above.).
Marketable Title:
A title free from defect. Master
Lease:
A controlling lease.
Maturity:
The date on which the principal balance of a loan, bond, or other
financial instrument becomes due and payable. Maximum
Financing:
A loan amount within 5 percent of the highest loan-to-value ratio allowed
for a property. Mechanic's Lien:
A legal claim
securing priority of payment for work contracted for and performed and material
furnished by a mechanic or other person for the construction or repair of a
building. The lien attaches to the
land as well as any buildings and improvements.
The landowner does not own clear title until the debt is paid. Merged
Credit Report:
A report that draws information from the Big Three credit-reporting
companies: Equifax, Experian, and Trans Union Corp. Minimum Minimum
Payment:
The minimum amount that must be paid monthly on an account. On the HELOC
product, the minimum payment is interest only during the draw period. On the
Fixed Rate Second products, the minimum payment is principal and interest. Monthly
Mortgage Insurance (MI) Payment: Portion of
monthly payment that covers the cost of Private Mortgage Insurance. Monthly
Payment (P&I):
This is the monthly mortgage payment on a home loan; this includes
principal and interest, but excludes any amounts that are applied to taxes and
insurance. Monthly
Principal & Interest (P&I) Payment: Portion
of monthly payment that covers the principal and interest due on the loan. Monthly
Taxes & Insurance (T&I) Payment: Portion of
monthly payment that funds the escrow or impounds account for taxes and
insurance.
Mortgage:
A lien against real property given by a borrower to a lender as security
for money borrowed. 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 off the securities.
Mortgage (Open-End):
A mortgage that allows additional money to be borrowed (up to the
original loan amount) without refinancing the loan or paying additional
financing charges. Mortgage Balance: See
Principal Balance. Mortgage Commitment:
A legal contract between a borrower and a lender to advance a
mortgage loan when the borrower meets certain conditions, e.g., completing the
project, acceptance by the lender's agent, etc.
Mortgage Insurance Premium (MIP): The payment made by a
borrower of FHA insured mortgages to provide a reserve that protects lenders
against losses from very high loan-to-value loans.
Mortgage Loan:
A loan which is secured by a mortgage lien filed against real property.
Mortgage-Interest Deduction:
The tax write-off that the Internal Revenue Service allows most owners to
claim for annual interest payments made on real estate loans. Mortgagee
Mortgagee:
The entity to whom the mortgage is given; i.e., the lender.
Mortgagor:
The entity who gives the mortgage; i.e., the borrower. Multi-Dwelling Property: A
property that contains individual units for several households but carries only
one mortgage.
|
|
Subscribe FREE!!!      |
