|
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 such as 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. |
