A • B • C • D • E • F • G • H • I • J • K • L • M • N • O • P • Q • R • S • T • U • V • W • X • Y • Z • Notes on Using this Glossary - M -Marketable Title: A title that is free and clear of objectionable liens, clouds, or other title defects. A title that enables an owner to sell his or her property freely to others and that others will accept without objection. Market Value: The amount for which a property would sell if put upon the open market and sold in the manner by which property is ordinarily sold in the community in which the property is situated. The highest price estimated in terms of money that a buyer would be warranted in paying and a seller would be justified in accepting, provided both parties were fully informed, acted intelligently and voluntarily, and, furthermore, that all the rights and benefits inherent in or attributable to the property were included in the transfer. Meeting of Minds: A mutual intention of two persons to enter into a contract affecting their legal status based on agreed upon terms. Mortgage: A lien or claim against real property given by the buyer to the lender as security for money borrowed. Under government insured or loan guarantee provisions, the payments may include escrow amounts covering taxes, hazard insurance, water charges, and special assessments. Mortgages generally run from 10 to 30 years, during which the loan is to be paid off. Mortgagee: The one receiving a mortgage (usually a financial institution). The lender. Mortgagor: The one granting a mortgage on his or her property. The borrower. 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. Mortgage Insurance Premium: The payment made by a borrower to the lender for transmittal to HUD to help defray the cost of the FHA mortgage insurance program and to provide a reserve fund to protect lenders against loss in insured mortgage transactions. In Fl-IA insured mortgages, this represents an annual rate of one-half of 1 percent paid by the mortgagor on a monthly basis. Mortgage Note: A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment. Mortgage (Open-End): A mortgage with a provision that permits borrowing additional money in the future without refinancing the loan or paying additional financing charges. Open-end provisions often limit such borrowing to no more than would raise the balance to the original loan figure. Negative Amortization: A loan payment schedule in which the outstanding principal balance of a loan goes up rather than down because the payments do not cover the full amount of interest due. The monthly shortfall in payment is added to the unpaid principal balance of the loan. - N -Non-Assumption Clause: A statement in a mortgage contract forbidding the assumption of the mortgage by another borrower without the prior approval of the lender. Note: An instrument of credit given to attest a debt; a written promise to pay money, which may or may not accompany a mortgage or other security agreement. |