Manufacturer
Suggested Retail Price (MSRP)
It represents the manufacturer's recommended
selling price for a vehicle and each of its
options.
Manufacturer's Rebate
A program offered directly to the buyer by
manufacturers to increase the sales of slow-selling
models or to reduce excess inventories.
Margin
The amount a lender adds to the index on an
adjustable rate mortgage to establish the
adjusted interest rate.
Market Value
The highest price that a buyer would pay and
the lowest price a seller would accept on
a property. Market value may be different
from the price a property could actually be
sold for at a given time.
Marketable Title
A title that is free and clear of objectionable
liens, clouds, or other title defects. A title
which enables an owner to sell his property
freely to others and which others will accept
without objection.
Mark-up The amount of profit received by the
dealer on each car. Mark-up can be calculated
by subtracting the selling price from the
invoice price.
Material Debt
Liability that is substantial. The debt results
from a recent inquiry and could affect the
ratios used to make a decision on the loan.
Maximum loan amount
The greatest amount of money that a borrower
is qualified to borrow.
Merged Credit Reports
Information issued by one credit reporting
company that receives credit history information
from more than one credit repository and combines
all of it into one concise format. May be
individual or joint.
Minimum Down Payment
Minimum down payment is the amount of money
you are required to put down at closing. If
the minimum is 10%, you must make a down payment
of at least $10,000 on a $100,000 house.
Money Factor
This number is set by the lessor and can vary
from company to company. This is how the lessor
determines their profit. It is a fractional
number, such as .0042, and is used to calculate
the lease fee, by multiplying it by the sales
price of the vehicle you are leasing. The
monthly payment combines the resulting fee
with the depreciation charge. Consumers should
look for a lower money factor number. While
lessors are not required by Regulation M to
disclose the money factor, you can still insist
on knowing it before entering a lease.
Monroney Sticker Price
Required by federal law, this label affixed
to the car window shows the base price, the
manufacturer's installed options with the
manufacturer's suggested retail price, the
manufacturer's freight or transportation charge,
and the fuel economy (mileage). The label
may not be removed by anyone other than the
purchaser.
Monthly Payment
The amount paid each month towards the principal
and interest amount of a loan. The monthly
payment may or may not include taxes and insurance.
Monthly Payment (P&I)
The monthly payment amount shown includes
only principal and interest. When comparing
with other offers please take this into consideration.
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.
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.
Mortgage Broker
A person or entity that specializes in loan
originations, receiving a commission to match
borrowers and lenders. The Mortgage Broker
performs some or most of the loan processing
functions such as taking loan applications,
ordering credit reports, appraisals, and title
reports. Typically the Mortgage Broker does
not underwrite the loan and generally does
not use its own funds for closing. The Mortgage
is generally closed in the name of the lender
who commissioned the broker's services. A
Mortgage Broker will not service the Mortgage.
An entity or individual engaged to handle
or perform, for a Seller or correspondent,
part of the mortgage application processing,
underwriting, funding or postclosing functions,
but not any activities related to obtaining
an application for a wholesale origination.
This entity is typically paid on a fee basis
for services performed, with the payment of
fees not being contingent on Mortgage approval
or closing.
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
Money paid to insure the mortgage when the
down payment is less than 20 percent.
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 FHA insured mortgages this represents an
annual rate of one-half of one 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.
Mortgagee
The lender.
Mortgagor
The borrower or homeowner.
Multiple Listing Service (MLS)
A computer database that compiles information
on houses listed for sale in a particular
area by participating real estate agents.
It is maintained and accessed by agents who
use the listings to match their clients' needs
with property descriptions on the database.
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