M

Manufactured Home

A factory assembled residence built in units or sections that are transported to a permanent site and erected on a foundation.

Margin

The percentage difference between the index for a particular loan and the interest rate charged. This is a number predetermined by the lender.

Maximum Cash Out

The maximum amount of money you are allowed to get back from your mortgage transaction based on the loan information provided and the amount of equity you have in your home.

Maximum Monthly Payment

As part of your Mortgage 1st® approval, you are given a maximum monthly payment for which you qualify based on the information you provided. This maximum payment is inclusive of the four major components of a typical mortgage payment: taxes, insurance, loan principal and interest.

Monthly Mortgage Payment

A monthly mortgage payment typically contains four parts called the PITI (principal, interest, taxes, and insurance). If you pay your taxes and insurance on your own, you pay only principal and interest to your lender.

Monthly Principal and Interest (PandI) Payment

Principal and interest is the dollar portion to repay the loan. All interest that occurs is calculated on the current balance owing. The principal reduces the remaining balance of a mortgage.

Mortgage

A legal document by which real property is pledged as security for the repayment of a loan.

Mortgage Banker

An individual or company that originates and/or services mortgage loans.

Mortgage Broker

An individual or company that arranges financing for borrowers.

Mortgage Insurance

Insurance to protect the lender in case you default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home's appraised value. (Note, however, that FHA and VA loans have different insurance guidelines.)

Mortgage Loan

A loan for which real estate serves as collateral to provide for repayment in case of default.

Mortgage Note

Legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a mortgage or deed of trust or other security instrument.

Mortgage Term

The length of time given to repay the loan.

Mortgagee

The lender in a mortgage loan transaction.

Mortgagor

The borrower in a mortgage loan transaction.