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| Margin | An amount that is usually a percentage and is added to the index to determine the interest rate for adjustable rate mortgages. |
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| 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 might be “interest only” or “simple interest.” In other plans, the minimum payment might be “amortized” and include principal and interest. |
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| Mortgage Banker | Originates mortgage loans, lending you their funds and closing the loan in their name. |
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| Mortgage Broker | Similar to mortgage bankers, they take loan application and processes the necessary paperwork. Unlike mortgage bankers, brokers do not fund the loan with their own money, but work on behalf of several investors, such as mortgage bankers, savings & loan banks, or investment bankers. |
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| Mortgage Insurance | Insurance purchased by the borrower to insure the lender against loss should he or she default. The Mortgage Insurance Premium (MIP) is paid on government-insured mortgages such as FHA or VA loans regardless of the loan‑to-value (LTV). Should you pay off a government-insured loan in advance of maturity, you might be entitled to a small refund of MIP. Private Mortgage Insurance (PMI) is paid on those loans that are not government-insured and that have an LTV greater than 80 percent. When you have accumulated 20% of your home’s value as equity, your lender may waive PMI at your request. Please note that neither MIP nor PMI is life insurance for paying off the loan in the event of death. |
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| Mortgage Loan | A loan that uses 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. |
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| Mortgagee | The lender in a mortgage loan transaction. |
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| Mortgagor | The borrower in a mortgage loan transaction. |
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