Understand the most important lending and mortgage terms. Mortgages can be confusing for the first time home buyer, so let us help explain. Below you'll find explanations for most of the mortgage industry terms.

What is Margin? The number of percentage points added to an index to calculate the interest rate on an ARM at each…
Written by Henry Gilbert
What is Market rate? The average rate charged by lenders for a…
Written by Henry Gilbert
What is Market value? The highest price that a buyer would pay for a property and the lowest price a seller would…
Written by Henry Gilbert
What is Marketable title? A title free and clear of liens, clouds or other defects that would prevent the sale of the…
Written by Henry Gilbert
What is Maturity? The date on which the principal balance of a loan becomes due and…
Written by Henry Gilbert
What is MIP (Mortgage insurance premium)? Insurance purchased by borrower to insure against default on a FHA…
Written by Henry Gilbert
What is Monthly housing expense? Total monthly expense of principal, interest, taxes and…
Written by Henry Gilbert
What is Mortgage? A legal document that pledges a property to the lender as security for payment of a…
Written by Henry Gilbert
What is Mortgage Banker? A company that originates mortgages exclusively for resale in the secondary mortgage…
Written by Henry Gilbert
What is Mortgage banker? A professional that originates mortgage loans, funding them with his own…
Written by Henry Gilbert
What is Mortgage Broker? An individual or company that brings borrowers and lenders together for the purpose of loan…
Written by Henry Gilbert
What is Mortgage broker? A specialist that arranges financing for borrowers, but places loans with lenders rather than funding them with their own…
Written by Henry Gilbert
What is Mortgage Insurance? A contract that insures the lender against loss caused by a mortgagor's default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a…
Written by Henry Gilbert
What is Mortgage Life Insurance? A type of term life insurance In the event that the borrower dies while the policy is in force, the debt is automatically paid by insurance…
Written by Henry Gilbert
What is Mortgage loan? A loan for which real estate serves as collateral to provide for repayment in case of…
Written by Henry Gilbert
What is Mortgage note? A legal document that obligates a borrower to repay a loan at a stated interest rate during a specified period of time. The agreement is secured by a…
Written by Henry Gilbert
What is Mortgagee? The lender in a mortgage loan…
Written by Henry Gilbert
What is Mortgagor? The borrower in a mortgage loan…
Written by Henry Gilbert


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