REAL ESTATE DICTIONARY - M
Margin
The number of percentage points the lender adds to the
index rate to calculate the adjustable rate mortgage
(ARM) interest rate at each adjustment.
Market Value
The most likely price a given property will bring if
widely exposed on the market, assuming fully informed
buyer and seller.
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 freely to others and which
others will accept without objection.
Marketing
The management process through which efforts to conceive,
develop and deliver goods and services are integrated
to satisfy the needs and wants of selected customers
as a means of achieving company objectives.
Market Price
The price paid for a property; the amount of money that
must be given or which can be obtained at the market
in exchange under the immediate conditions existing
at a certain date. To be distinguished from market value.
Market Value
The highest price estimated in terms of money which
a buyer would be warranted in paying and a seller justified
in accepting, provided both parties were fully informed,
acted intelligently and voluntarily and, further, that
all the rights and benefits inherent in or attributable
to the property were included in the transfer.
Mechanics Lien
A lien created by statute for the purpose of securing
priority of payment for the price or value of work performed
and materials furnished in construction or repair of
improvements to land.
Misrepresentation
False statement made to or concealment of knowledge
from another party with the intent to provoke action
from that party.
Mortgage
A lien or claim against real property given as security
for a loan. It is a two party agreement as apposed to
the three-party agreement of a deed of trust.
Mortgage Broker
A professional that helps consumers through the loan
selection, processing and closing of a mortgage loan.
Most mortgage brokers have access to a wide range of
mortgage products through many mortgage lenders. Mortgage
brokers are paid a fee by the borrower when a suitable
mortgage is found and closed.
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.
Mortgagee
The lender of money or the receiver of the mortgage
document.
Mortgage Insurance
Insurance required for a loan-to-value ratio above 80.01%.
Mortgage Banker
Financial intermediaries that originate mortgage loans
through loan officers or independent mortgage brokers
and sell the mortgages into the secondary mortgage market.
Mortgage Note
The document outlining the amount of the debt, the terms
and payments, the interest rate, margins and caps for
ARMs, the name of the lender and the borrower, and any
other material item required by the lender.
Mortgage Warehousing
A funding facility, such as a commercial bank, that
is used by mortgage companies to fund loans which are
sold to an investor shortly thereafter. The mortgage
notes are used as collateral for this interim financing.
Mortgagor
The borrower of money or the giver of the mortgage document.
Multiple Listing Service
A means of making possible the orderly dissemination
and correlations of listing information to its members
so that REALTORS may better serve the buying and selling
public.
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