| Affinity Moving Services Glossary of Terms |
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MANUFACTURED HOME A structure built in a factory that is later shipped to, and placed on, the home site. The term can apply to both mobile homes and pre-fab homes
MARGIN For an adjustable-rate mortgage (ARM) or home equity line of credit, the amount that is added to the index to establish the interest rate on each adjustment date, subject to any limitations on the interest rate change. The margin is static and will not change during the life of the loan.
MASTER ASSOCIATION A homeowners' association in a large condominium or planned unit development (PUD) project that is made up of representatives from associations covering specific areas within the project. In effect, it is a "second-level" association that handles matters affecting the entire development, while the "first-level" associations handle matters affecting their particular portions of the project.
MASTER-PLANNED COMMUNITY A large scale, mixed use, real estate development that follows a long term, comprehensive plan. Master-planned communities typically blend different price ranges of residential neighborhoods with some commercial properties designed to serve the residents' needs. Residential properties may include patio homes, townhouses, condominiums and apartment complexes in addition to neighborhoods of single-family homes. Likewise, multiple home builders are included in the construction of the various neighborhoods. Commercial development can consist of retail strip centers ans shopping malls, restaurants, entertainment venues and office buildings.
In addition, master-planned communities usually offer amenities such as public recreation areas and parks, neighborhood schools and extensive landscaping. Recreation areas may include public swimming pools, tennis courts, children's play grounds and sports fields. Many offer large water features and public or private golf courses. The term "master-planned" has become somewhat of an overused buzzword in the current market place. True master-planned communities require a a multi-year commitment from the developer and contain thousands of homes.
MATURITY The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable. At the maturity of a 30-year loan the principal balance will be paid in full.
MAXIMUM FINANCING The maximum amount a lender will lend on a specific loan program.
MAXIMUM RATE The maximum interest rate that can accrue on a variable rate loan
MECHANIC'S LIEN A legal claim placed on real estate by someone who is owed money for labor, services or supplies contributed to the property for the purpose of improving it. Ty pical lien claimants are general contractors, subcontractors and suppliers of building materials. A mechanics' lien claimant can sue to have the real estate sold at auction and recover the debt from the proceeds. Because property with a lien on it cannot be easily sold until the lien is satisfied (paid off), owners have a great incentive to pay their bills.
MEDIATION A dispute resolution method designed to help warring parties resolve their own dispute without going to court. In mediation, a neutral third party (the mediator) meets with the opposing sides to help them find a mutually satisfactory solution. Unlike a judge in her courtroom or an arbitrator conducting a binding arbitration, the mediator has no power to impose a solution. No formal rules of evidence or procedure control mediation; the mediator and the parties usually agree on their own informal ways to proceed.
MERGED CREDIT REPORT A credit report that contains information from more than one credit reporting agency. When the report is created, the information is compared for inconsistencies and duplicate entries. Any duplicates are combined to provide a summary of one's credit.
METES AND BOUNDS
MINIMUM PAYMENT The minimum amount that must be paid monthly on an account. On the HELOC product, the minimum payment is interest only during the draw period. On the Fixed Rate Second products, the minimum payment is principal and interest.
MISREPRESENTATION A false statement, or concealment, of material fact with the intention of inducing action of another.
MODIFICATION The act of changing any of the terms of the mortgage.
MONEY MARKET ACCOUNT A savings account that provides bank depositors with many of the advantages of a money market fund. Certain regulatory restrictions apply to the withdrawal of funds from a money market account.
MONTHLY DEBT A borrower's monthly expenses including credit cards, installment loans, student loan payments, alimony and child support and housing payment expense.
MONTHLY MORTGAGE INSURANCE (MI) PAYMENT Portion of monthly payment that covers the cost of Private Mortgage Insurance.
MONTHLY PRINCIPAL & INTEREST (P&I) PAYMENT Portion of monthly payment that covers the principal and interest due on the loan.
MONTHLY TAXES & INSURANCE (T&I) PAYMENT Portion of monthly payment that funds the escrow or impound account for taxes and insurance.
MONTHLY PAYMENT Payments to reduce the principal balance of a home loan made once a month.
MORTGAGE A legal document that pledges a property to the lender as security for payment of a debt.
MORTGAGE BANKER A company that originates, sells and services mortgages exclusively for resale in the secondary mortgage market.
An individual or company that brings borrowers and lenders together for the purpose of loan origination. Mortgage brokers typically require a fee or a commission for their services.
MORTGAGEE The lender in a mortgage agreement.
MORTGAGE INSURANCE A contract that insures the lender against loss caused by a borrower's default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a government agency such as the Federal Housing Administration (FHA). Depending on the type of mortgage insurance, the insurance may cover a percentage of or virtually all of the mortgage loan. See private mortgage insurance (PMI).
MORTGAGE INSURANCE PREMIUM (MIP) The amount paid by a borrower 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 INSURANCE A type of term life insurance sometimes bought by borrowers. The amount of coverage decreases as the loan's principal balance declines. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds. See credit life insurance.
MORTGAGOR The borrower in a mortgage agreement.
MULTI-DWELLING UNITS Properties that provide separate housing units for more than one family, although they secure only a single mortgage. Ty pically a 2-4 unit property.
MULTIPLE LISTING SERVICE (MLS) A system by which a number of real estate firms share information about homes that are for sale. Membership usually provides a monthly book and/or computer service that provides Realtors® with detailed listings of most homes currently on the market. |