Basic Terms Used for Real Estate & Mortgages
Real estate & loans may involve other terms. In the event you don't understand some of these terms, ask for help from your real estate agent, lender or attorney.
Margin
A fixed amount added to the loan index that is used to determine the interest rate on an adjustable mortgage.
Market Value
The lowest price a seller is willing to accept and the highest a buyer is willing to pay on a given property. Market value may fluctuate during any given period of time.
Mechanics Lien
The ability for an unpaid contractor or subcontractor to process a lien against property for compensation.
Mortgage
A written statement that forms a lien on property as security for the payment of certain debts.
Mortgage Backed Security (MBS)
A bond that is protected/secured by mortgage loans.
Mortgage Banker
One who has expertise in originating mortgage loans, servicing mortgage loans, and selling mortgage loans to investors.
Mortgage Broker
Places appropriate loans with borrowers and lenders. Eventually they (mortgage brokers) are paid when there is a closing on the loan.
Mortgagee
The lender.
Mortgagor
The borrower.
Mortgage Note
A written statement that holds the party responsible (mortgagor) for paying off the loan. The statement is in secured by a mortgage and is used as proof to show indebtedness. In general, the note shows the debt that the mortgage covers and holds the mortgagor responsible for repaying.
