Glossary of commonly used terms and phrases

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Manufactured - Homes that are built off site and are on their own steel under carriage with wheels and axles and pulled to the site. They are usually doublewide or triplewide, but can be singlewide. If put on a permanent foundation with wheels and axles removed, it is taxed as “real property.”
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Manufactured Construction Loan - A loan provided for the development of a manufactured property, specifically home transport, removal of the axles and wheels, permanent foundation development, etc…
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Margin (Also called 'Spread') - The number of percentage points a lender adds to the index value to calculate the adjustable rate mortgage (ARM) interest rate at each adjustment period. A representative margin would be 2.75%.
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Market Approach - A method of appraising a property by comparing sales prices of similar properties that have recently sold.
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Market Value - The price as determined by buyers and sellers in an open market.
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Marketable Title - A title that is free and clear of objectionable liens, clouds, or other title defects. A title which enables an owner to sell his property without encumbrances.
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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.
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MAT - Monthly Average Treasury index.
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Maturity - The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
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Mechanic's Lien - Any payment owned to a contractor for work done on the property.
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Merged Credit Report - A credit report that contains information from three credit repositories. When the report is created, the information is compared for duplicate entries. Any duplicates are combined to provide a summary of your credit.
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Metes and Bounds - A way of describing the boundaries of land by courses, directions, distances, and monuments.
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Mile - A linear measurement equal to 5280 feet on land and 6076 feet across water.
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Mini Perm - Short-term financing, usually three to six years.
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Mobile Home - Usually within a home park, and generally a single to doublewide. It can be a triple wide with wheels and axles not removed, therefore taxed as a moving vehicle.
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Modular - Pre-fabricated at a factory, then moved to site and onto a permanent foundation (no under carriage, wheels, or axles).
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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.
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Money Market Fund - A mutual fund that allows individuals to participate in managed investments in short-term debt securities, such as certificates of deposit and Treasury bills.
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Monthly Payment Mortgage - A mortgage that requires payments once a month to reduce debt.
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Mortgage - A legal document that pledges a property to the lender as security for a payment of a debt.
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Mortgage Banker - A banker who originates, sells, and services mortgages in the secondary mortgage market.
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Mortgage Bankers Association of America (MBA) - A trade organization of the mortgage bankers and brokers in the United States. They provide seminars and publications for its members and sponsors.
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Mortgage Broker - An individual or company which brings borrowers and lenders together for the purpose of loan origination, but which does not originate or service the mortgage.
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Mortgage Commitment - A written notice from the bank or other lending institution saying it will advance mortgage funds in a specified amount to enable a buyer to purchase a house.
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Mortgage Correspondent - An authorized person who represents a financial institution in a certain area for the purpose of placing loans.
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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.
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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.
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Mortgage Insurance Premium - The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In FHA insured mortgages this represents an annual rate of one-half of one percent paid by the mortgagor on a monthly basis.
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Mortgage Life Insurance - A type of term life insurance often bought by mortgagors. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds.
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Mortgage Note - A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.
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Mortgage Reduction Programs - A type of accelerated payment program where payments are made more frequently (bi-weekly or weekly) rather than conventional monthly payments. The net result may be a savings on the total interest paid.
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Mortgage Securities Pool - A method by which securities backed by the value of real estate mortgages are issued in the market for investment purposes.
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Mortgage Servicing - The lender or company acting for the lender, for a service fee, that manages the mortgage by collecting payments, releasing the lien upon payment in full, foreclosing if in default, paying taxes and insurance, etc.
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Mortgagee - The person or company who receives the mortgage as a pledge for repayment of the loan. The mortgage lender.
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Mortgagor - The mortgage borrower who gives the mortgage as a pledge to repay.
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Multi-dwelling Units - Properties that provide separate housing units for more than one family, although they secure only a single mortgage.
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Multi-family Mortgage - A residential mortgage on a dwelling that is designed to house more than four families, such as a high-rise apartment complex.
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