Glossary

Margin The number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period. A representative margin would be 2.75%.

Mechanic's lien. Any payment owned to a contractor for work done on the property.

Mortgage A legal document that pledges a property to the lender as security for payment of a debt

Mortgage disability insurance A disability insurance policy which will pay the monthly mortgage payment in the event of a covered disability of an insured borrower for a specified period of time.

Mortgage insurance (MI) Insurance written by an independent mortgage insurance company protecting the mortgage lender against loss incurred by a mortgage default. Usually required for loans with an LTV of 80.01% or higher.

Mortgagee The person or company who receives the mortgage as a pledge for repayment of the loan. The mortgage lender.

Mortgagor The mortgage borrower who gives the mortgage as a pledge to repay.

 

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