Mortgage Glossary
There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.
M
MACRS
Modified Accelerated Cost Recovery System.
Maintenance
Activities required to compensate for wear and tear on a property.
Management fee
The fee charged for professional property management. Usually set at a fixed percentage of total rental income generated by the managed property.
Mansion Tax
A tax charged by some state or local governments at the time of transfer of real estate title from one owner to another particularly for high valued properties. For our comparison purposes, this fee is considered to be a tax or other unavoidable fee.
Margin
The number of percentage points a lender adds to the index value to calculate the ARM interest rate at each adjustment period.
Master Association
A homeowners' association sometimes formed in a large condominium project or planned unit development (PUD) that is made up of representatives from associations covering specific areas within the project.
Maturity
The date on which the principal balance of a financial instrument becomes due and payable.
Maximum Financing
Usually, a loan amount that is within 5 percent of the highest loan-to-value (LTV) percentage allowed for a specific product.
Merged Credit Report
A credit report that contains information from at least three credit repositories. Any duplicate entries are combined to provide a concise summary of your credit.
Military Classification
Indicate whether the military service was as an Active Duty Member, Reserve Service Member or National Guard Member.
Monetary Policy
Actions by the Federal Reserve System to influence the cost and availability of credit, with the goals of promoting economic growth, full employment, price stability and balanced trade with other countries.
Money Market Account
A type of savings account that provides bank depositors with many of the advantages of a money market fund. Certain regulatory restrictions may apply to the withdrawal of funds.
Money Market Fund
A mutual fund that allows individuals to participate in managed investments in short-term debt securities, such as certificates of deposit and United States Treasury bills.
Mortgage
The legal document used by a borrower to pledge their property as security in order to obtain a loan. In some areas of the country, the mortgage is called a "deed of trust".
Mortgage Banker
A company that originates mortgages for resale in the secondary mortgage market.