A B C D E F G H I J L M O P R S T U V #

Margin

An amount the lender adds to an index to determine the interest rate on an adjustable rate mortgage.

Mortgage

A lien on the property that secures the Promise to repay a loan.

Mortgage Banker

A company that originates loans and resells them to secondary mortgage lenders like Fannie Mae or Freddie Mac.

Mortgage Broker

A firm that originates and processes loans for a number of lenders.

Mortgage Insurance

A policy that protects lenders against some or most of the losses that can occur when a borrower defaults on a mortgage loan; mortgage insurance is required primarily for borrowers with a down payment of less than 20% of the home's 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.

[back to top]