Margin
An amount, usually a percentage, which is added to the index to determine the interest rate for adjustable rate mortgages.
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.
Minimum Payment
The minimum amount that you must pay, usually monthly, on a home
equity loan or line of credit. In some plans, the minimum payment may
be "interest only," (simple interest). In other plans, the minimum
payment may include principal and interest (amortized).
MIP (Mortgage Insurance Premium)
It is insurance from FHA to the lender against incurring a loss on account of the borrower's default.
Mortgage
A legal document that pledges to the lender as security for payment of a debt.
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 Loan
A loan which utilizes real estate as security or collateral to
provide for repayment should you default on the terms of your loan. The
mortgage or Deed of Trust is your agreement to pledge your home or
other real estate as security.
Mortgagee
The lender in a mortgage loan transaction.
Mortgagor
The borrower in a mortgage loan transaction.
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