Mortgage and Real Estate Terms – M

MANUFACTURED HOME – factory built or pre-fabricated housing including mobile homes. Generally they must be a ‘double-wide’ on a permanent foundation for most mortgage companies to consider funding. You must already own the dirt.

MARKET VALUE – the highest price that a buyer and the lowest price that a seller would accept, neither one being compelled to buy or sell; also called Fair Market Value.

MAXIMUM LOAN AMOUNT – highest loan dollar amount allowed under Federal or conventional guidelines. In commercial real estate, the highest loan dollar amount that a property can support based on projected income.

MECHANIC’S LIEN – a claim created by law to secure priority of payment for work performed and materials provided by a vendor. Land may be attached as well as building, equipment or other property.

METES AND BOUNDS – a description of a parcel of land in a deed in which the boundaries are defined by directions and distances.

MINIMUM PROPERTY STANDARDS – regulations and guidelines used as underwriting criteria that set forth acceptable property standards and specifications.

MOBILE HOME – a factory-assembled residence consisting of one or more modules in which a chassis and wheels are an integral of the structure, and can be readied for occupancy without removing the chassis and/or wheels. ForTheBestRate.com works with several lender who offer double wide mobile home financing. These lenders typically require at least 15-20% down.

MODULAR HOME – a factory-assembled residence built in units or sections, transported to a permanent site and erected on a foundation. Excludes mobile homes.

MORTGAGE – a pledge of property, especially real property, security for a debt. In many States this document is a Deed of Trust. The document may contain the terms of repayment of the debt.

MORTGAGE COMMITMENT – an agreement between lender and borrower detailing the terms of a mortgage loan, such as interest rate, loan type, term and amount.

MORTGAGE INSURANCE (MI) – insurance which protects mortgage lenders against loss in the event of default by the borrower. This allows lenders to make conventional refinance loans at higher loan-to-value rations, and purchase money loans with lower down payments. The Federal government offers MI through HUD/FHA; private entities offer MI for conventional loans.

MORTGAGE INSURANCE CERTIFICATION – certificate issued by HUD/FHA as evidence that a mortgage has been insured and that a contract of mortgage insurance exists between HUD/FHA and the lender incorporating HUD/FHA regulations identified in the certificate. There is a premium payment, paid by the borrower for this.

MORTGAGE INSURANCE PREMIUM (MIP) – the amount paid by a mortgagor (borrower) for mortgage insurance either to FHA or a private mortgage insurance company.

MORTGAGE NOTE – a written promise to pay a sum of money at a stated interest rate, during a specific term. A mortgage note is secured by a mortgage.

MORTGAGEE – the lender in a mortgage transaction.

MORTGAGEE CLA– USE – a clause that may be attached to an insurance policy stipulating that the lender will receive a portion of insurance proceeds sufficient to satisfy the unpaid amount of a loan in the event of loss.

MORTGAGOR – the borrower in a mortgage transaction who pledges real property as a security for a debt.

MULTIPLE LISTING SERVICE (MLS) – a service provided by the Board of Realtors which provides access to real estate listings of properties for sale or lease.