Glossary (click letters)
Homes that are built entirely in a factory in accordance with a federal building code administered by the U.S. Department of Housing and Urban Development (HUD). Manufactured homes may be single- or multi-section and are transported from the factory to a site and installed. Homes that are permanently affixed to a foundation often may be classified as real property under applicable state law, and may be financed with a mortgage. Homes that are not permanently affixed to a foundation generally are classified as personal property, and are financed with a retail installment sales agreement.
For an adjustable-rate mortgage (ARM), the amount that is added to the index to determine the interest rate on each adjustment date, as stated in the note.
The date on which a mortgage loan is scheduled to be paid in full, as stated in the note.
Merged Credit Report
A credit report issued by a credit reporting company that combines information from the three major credit repositories.
Any change to the terms of a mortgage loan, including changes to the interest rate, loan balance, or loan term.
Money Market Account
A type of investment in which funds are invested in short term securities.
A loan to finance the purchase of real estate, for which the borrower pledges the real property as security for the repayment of the loan. The borrower gives the lender a lien on the property as collateral for the loan.
A company that specializes in originating real estate loans, and typically uses its own funds or warehouse line of credit to close loans.
An individual or firm that brings borrowers and lenders together for the purpose of loan origination. A mortgage broker typically takes loan applications and may process loans, but generally does not use its own funds to close the loan. Mortgage brokers often act as independent contractors and not as an agent of the borrower or lender.
Mortgage Insurance (MI)
Insurance that protects lenders against losses caused by a borrower's default on a mortgage loan. MI typically is required if the borrower's down payment is less than 20% of the purchase price.
Mortgage Insurance Premium (MIP)
The amount paid by a borrower for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (PMI) company.
Mortgage Life Insurance
A type of insurance that will pay off a mortgage if the borrower dies while the loan is outstanding; a form of credit life insurance.
The institution or individual to whom a mortgage is given; the lender.
The owner of real estate who pledges property as security for the repayment of a debt; the borrower.
A mortgage loan on a building with more than four dwelling units.
Typically, buildings with five or more dwelling units.