Real Estate Glossary
- 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.