Designates a person who is a member of a professional appraisal organization.
The difference between the interest rate and the index on an adjustable rate mortgage. The margin remains stable over the life of the loan. It is the index which moves up and down.
Land which barely pays the cost of working or using.
Title free and clear of objectionable liens or encumbrances; title which is free from reasonable doubts or defects, which can be readily sold or mortgaged.
The highest price a ready, willing and able buyer, not forced to buy, will pay to a ready, willing and able seller, not forced to sell, allowing a reasonable time for exposure in the open market.
A fact is material if it is one which the agent should realize would be likely to affect the judgment of the principal in giving his or her consent to the agent to enter into the particular transaction on the specified terms.
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
A lien which exists against real property in favor of persons who have performed work or furnished materials for the improvement of real estate.
Merged Credit Report
A credit report which reports the raw data pulled from two or more of the major credit repositories. Contrast with a Residential Mortgage Credit Report (RMCR) or a standard factual credit report.
Merger of Tittle
The absorption of one estate into another
Metes and Bounds
A method of describing or locating real property; metes are measures of length and bounds are boundaries; a description starting with a well-marked point of beginning and following the boundaries of the land until it returns once more to the point of beginning.
A linear measurement of distance equal to 1760 yards, 5280 feet, or 1,608 meters.
A clause inserted in some leases to allow the military tenant to terminate the lease in case of transfer, discharge or other circumstances.
One-tenth of one cent. Used in some states to compute property taxes.
A person who is under the legal age of competence; one under 18 years of age.
A false statement of a material fact made with the intent to induce some action by another party.
Occasionally, a lender will agree to modify the terms of your mortgage without requiring you t refinance. If any changes are made, it is called a modification.
A fixed object and point established by surveyors to establish land locations; includes not only artificial objects such as posts and fences, but natural objects such as trees, mountains and water courses.
A legal document that pledges a property to the lender as security for payment of a debt. Instead of mortgages, some states use First Trust Deeds.
A corporation or firm which makes, delivers and services mortgage loans.
A person or firm which acts as an intermediary between borrower and lender.
The party who lends money and accepts a mortgage to secure the payment of the debt.
Mortgage Insurance (MI)
Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan. Often mistakenly referred to as PMI, which is actually the name of one of the larger mortgage insurers. Mortgage insurance is usually required in one form or another on all loans that have a loan-to-value higher than eighty percent. Mortgages above 80% LTV that call themselves "No MI" are usually a made at a higher interest rate. Instead of the borrower paying the mortgage insurance premiums directly, they pay a higher interest rate to the lender, which then pays the mortgage insurance themselves. Also, FHA loans and certain first-time home buyer programs require mortgage insurance regardless of the loan-to-value.
Mortgage Insurance Premium (MIP)
The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.
Mortgage Life and Disability Insurance
A type of term life insurance often bought by borrowers. The amount of coverage decreases as the principal balance declines. Some policies also cover the borrower in the event of disability. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds. In the case of disability insurance, the insurance will make the mortgage payment for a specified amount of time during the disability. Be careful to read the terms of coverage, however, because often the coverage does not start immediately upon the disability, but after a specified period, sometime forty-five days.
The borrower in a mortgage agreement.
Passageway for subterranean termites
Properties that provide separate housing units for more than one family, although they secure only a single mortgage.
Multiple Listing Service (M.L.S.)
An arrangement among brokers whereby they share their listings.