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. |
market value
The highest possible estimated price which a property will bring if exposed for
sale in the open market, allowing a reasonable time to find a knowledgeable buyer.
It is the expression of the objective concept of value. |
maturity date
The date on which the principal balance of a loan, bond, or other financial instrument
becomes due and payable. |
maximum financing
A mortgage amount that is within 5 percent of the highest loan-to-value (LTV)
percentage allowed for a specific product. Thus, maximum financing on a fixed-rate
mortgage would be 90 percent or higher, because 95 percent is the maximum allowable
LTV percentage for that product. |
merged credit report
A credit report that contains information from three credit repositories. When
the report is created, the information is compared for duplicate entries. Any
duplicates are combined to provide a summary of a your credit. |
mill
One one-thousandth of a dollar or one-tenth of a cent. A measure used to indicate
the property tax rate. |
modification
The act of changing any of the terms of the mortgage. |
monthly fixed instalment
That portion of the total monthly payment that is applied toward principal and
interest. When a mortgage negatively amortizes, the monthly fixed instalment 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. |
mortgage banker
A company that originates mortgages exclusively 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 typically require a fee or a commission
for their services. |
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 CMHC. 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 CMHC or to a private mortgage insurance 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. |
multidwelling units
Properties that provide separate housing units for more than one family, although
they secure only a single mortgage. |
multiple listing service
(MLS)
An arrangement among real estate practitioners, usually local real estate board
members, whereby each agent presents his/her listings to the other members who
may negotiate the transactions. If a sale results, the commission is divided between
the seller’s agent bringing the listing and the agent making the sale.
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