Glossary of Terms - M


The number of percentage points the lender adds to the index rate to calculate the adjustable rate mortgage (ARM) interest rate at each adjustment.

Market Value
The most likely price a given property will bring if widely exposed on the market, assuming fully informed buyer and seller.

Marketable Title
A title that is free and clear of objectionable liens, clouds or other title defects. A title which enables an owner to sell his property freely to others and which others will accept without objection.

Market Price
The price paid for a property; the amount of money that must be given or which can be obtained in the market in exchange under the immediate conditions existing at a certain date. To be distinguished from market value.

Market Value
The highest price estimated in terms of money which a buyer would be warranted in paying and a seller justified in accepting, provided both parties were fully informed, acted intelligently and voluntarily and, further, that all the rights and benefits inherent in or attributable to the property were included in the transfer.

Mechanics' Lien
A lien created by statute for the purpose of securing priority of payment for the price or value of work performed and materials furnished in construction or repair of improvements to land.

False statement made to or concealment of knowledge from another party with the intent to encourage action from that party.

A lien or claim against real property given as security for a loan. It is a two party agreement as apposed to the three-party agreement of a deed of trust. Must be recorded in the courthouse in order to obtain a valid Lien and priority over subsequent encumbrances,

Mortgage Broker
A professional that helps consumers through the selection, processing and closing of a mortgage loan. Most mortgage brokers have access to a wide range of mortgage products through many mortgage lenders. Mortgage brokers are paid a fee by the borrower when a suitable mortgage is found and closed.

Mortgage Commitment
A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount during a specified period of time to enable a buyer to purchase a house.

The lender of money or the receiver of the mortgage document, who can enforce the payment by the mortgagor through the foreclosure process.

Mortgage Insurance
Insurance required for a loan-to-value ratio above 80.01%.  It is for the protection of the mortgagee in the event of default by the mortgagor (See "PMI" in this Glossary)

Mortgage Banker
Financial intermediaries that originate mortgage loans through loan officers or independent mortgage brokers and sell the mortgages into the secondary mortgage market, although some bankers actually hold the mortgages in their own investment portfolios.

Mortgage Note
The document outlining the amount of the debt, the terms and payments, the interest rate, margins and caps for ARMs, the name of the lender and the borrower, and any other material item required by the lender.  The note is signed simultaneously with the mortgage and accompanies the mortgage.

Mortgage Warehousing
A funding facility, such as a commercial bank, that is used by mortgage companies to fund loans which are sold to an investor shortly thereafter. The mortgage notes are used as collateral for this interim financing.

The borrower of money or the giver of the mortgage document.

Multiple Listing Service
A means of making possible the orderly dissemination and correlations of listing information to its members so that REALTORS may better serve the buying and selling public.




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