Margin
The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
Margin
The number of percentage points the lender adds to the index rate to calculate the ARM interest rate at each adjustment.
Maturity
The date when the principal balance of a loan becomes due and payable.
Mitigation
Term usually used to refer to various changes or improvements made in a home; for instance, to reduce the average level of radon.
Modification
Any change to the terms of a mortgage loan, including changes to the interest rate, loan balance or loan term.
Mortgage
A lien on the property that secures the Promise to repay a loan. A security agreement between the lender and the buyer in which the property is collateral for the loan. The mortgage gives the lender the right to collect payment on the loan and to foreclose if the loan obligations are not met.
Mortgage Insurance
Insurance that protects the mortgage company against losses caused by a homeowner’s default on a mortgage loan. Mortgage insurance (or MI) typically is required if the homeowner’s down payment is less than 20% of the purchase price.
Mortgage Insurance Premium (MIP)
A monthly payment -usually part of the mortgage payment paid by a borrower for mortgage insurance.
Mortgage Modification
A loss mitigation option that allows a borrower to refinance and/or extend the term of the mortgage loan and thus reduce the monthly payments.
Mortgage Release (Deed-in-Lieu of Foreclosure)
The transfer of title from a homeowner to the mortgage company to satisfy the mortgage debt and avoid foreclosure, also called a Deed-in-Lieu of Foreclosure or a voluntary conveyance.
Mortgagee
The lender in a mortgage agreement.
Mortgagor
The borrower in a mortgage agreement.
