Glossary of Real Estate Terms (mo-mu)

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

Mortgage

• A legal document specifying a certain amount of money to purchase a home at a certain interest rate, and using the property as collateral.

Mortgagee

• A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.

Mortgagor

• The person who borrows money to purchase a house. The lender is called the mortgagee.

Mortgage acceleration clause

• A clause which allows a lender to demand that the entire balance of the loan be repaid in a lump sum under certain circumstances. The acceleration clause is usually triggered if the home is sold, title to the property is changed, the loan is refinanced or the borrower defaults on a scheduled payment.

Mortgage banker

• A company that provides home loans using its own money. The loans are usually sold to investors such as insurance companies and Fannie Mae.

Mortgage broker

• A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.

Mortgage insurance

• Required by lenders in some loans to protect them from a possible default . All conventional loans with less than a 20 percent down payments require private mortgage insurance, or PMI.

Mortgage-interest deduction

• The tax write-off that the Internal Revenue Service allows most owners to claim for the annual interest payments they make on their real estate loans.

Mortgage life insurance

• A special type of insurance that will pay off a mortgage if the borrower dies before the debt is retired.

Motivated buyer

• Any buyer with a strong incentive to make a purchase.

Motivated seller

• Any seller with a strong incentive to make a deal.

Move-in condition

• A house that is ready for a new occupant.

Move-up buyer

• A buyer who has purchased a home before and is looking for a bigger or more expensive home.

Mullion

• A vertical dividing bar between window lights or panels.

Multidwelling property

• A property that contains individual units for several households but carries only one mortgage.

Multifamily mortgage

• A mortgage on a multifamily dwelling with more than four families, typically an apartment building.

Multiple listing service (MLS)

• The service combines the listings for all available homes in an area, except For-Sale-By-Owner (FSBO) properties, in one directory or database.

Multiple offers

• Multiple purchase offers occur in hot markets or hot neighborhoods.

Municipal housing inspector

• Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.