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16 Cards in this Set
- Front
- Back
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Margin |
The amount a lender adds to the index on an adjustable rate mortgage to establish the adjusted interest rate. |
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Market Value |
The highest price that a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time. |
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Maturity |
The date on which the principal balance of a loan becomes due and payable. |
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Mortgage Insurance Premium (MIP) |
It is insurance from FHA to the lender against incurring a loss on account of the borrower's default. |
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Monthly Fixed Installment |
That portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortizes, the monthly fixed installment does not include any amount for principal reduction and doesn't cover all of the interest. The loan balance therefore increases instead of decreasing. |
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Mortgage |
A legal document that pledges a property to the lender as security for payment of a debt. |
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Mortgage Banker |
A company that originates mortgages exclusively for resale in the secondary mortgage market. |
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Mortgage Broker |
An individual or company that charges a service fee to bring borrowers and lenders together for the purpose of loan origination. |
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Mortgagee |
The lender.
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Mortgage Insurance
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Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA mortgage insurance.
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Mortgage Life Insurance
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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 proceeds
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Mortgagor
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The borrower or homeowner.
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Negative Amortization
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Occurs when monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan.
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Net Effective Income
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The borrower's gross income minus federal income tax.
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Non Assumption Clause
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A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. Note: The signed obligation to pay a debt, as a mortgage note
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Note
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A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
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