M – N

Manufacturer’s Rebate
An incentive for buyers to buy overstocked or slow-selling cars.
Margin
One of the components used to calculate the interest rate for an adjustable rate mortgage (ARM). The other is called the index.
Maximum Loan Amount
The highest amount a borrower is qualified to borrow. The limit might be dictated by the loan program – for example, FHA home loans have loan limits that can’t be exceeded – or by the borrower’s income, because lenders are required by law to verify that the borrower has the ability to repay a mortgage.
Monthly Debt
Include all of you and your co-borrower’s monthly debts, including: minimum monthly required credit card payments, car payments, student loans, alimony/child support payments, any house payments (rent or mortgage) other than the new mortgage you are seeking, rental property maintenance, and other personal loans with periodic payments.
Monthly Payment
The amount a borrower is required to pay each month until a debt is paid off.
Monthly Payment With PI
This is a monthly mortgage payment that only includes the loan principal and interest
Mortgage
A mortgage is a legal agreement between a borrower (sometimes called a “mortgagor”) and a lender (or “mortgagee”). In exchange for advancing money to the borrower, the lender charges interest. The borrower puts up real estate as security (also called “collateral”) for the loan. If the borrower fails to repay the lender according to the terms of the loan (which is called “default”), the lender can foreclose, taking and selling the property to pay off the loan.
Mortgage Broker
A mortgage broker helps borrowers obtain mortgage financing from wholesale mortgage lending companies. For their services, brokers are paid a fee by the borrower or a yield spread premium (commission) by the lender.
Mortgage Insurance
A policy that protect a mortgage lender if the borrower defaults on (does not repay) a mortgage.
Mortgage Note
A mortgage note is a document you sign <a href=”https://www.lendingtree.com/mortgage/closing-a-mortgage-home-loan-summary”>at the closing of your mortgage</a> that obligates you to repay the mortgage at a specific rate and over a specific period of time. When you sign the mortgage note at closing, you become personally responsible for repaying the mortgage.
MSRP
The Manufacturer’s Suggested Retail Price of a new vehicle.
Multiple Listing Service
A computer database that compiles information on houses listed for sale in a particular area by participating real estate agents.
Negative Amortization
Negative amortization occurs when your monthly payments are not large enough to cover all the interest due on the loan. The unpaid interest is added to the unpaid balance of the loan making your overall balance higher than the prior month rather than lower. The danger of negative amortization is that the buyer ends up owing more than the original amount of the loan.
Net Operating Loss
A net operating loss is an accounting term that refers to a period during which a company incurs more expenses than income.
Net Trade In Value
The net trade-in value is the amount of money offered to you by a car dealer for your old car, to be applied as a credit toward your purchase of a new vehicle. It will reduce the loan amount and payments of your new car.
No Credit Business Loans
Alternative lenders help small businesses without a robust credit history get the cash they need with no credit business loans. Alternative lenders focus on the types of collateral that big banks often overlook, including real estate and outstanding invoices.Alternative lenders help small businesses without a robust credit history get the cash they need with no credit business loans. Alternative lenders focus on the types of collateral that big banks often overlook, including real estate and outstanding invoices.
No-Doc Mortgage
An extinct mortgage product that does not require mortgage lenders to document the borrower’s income or assets. No-doc mortgages are illegal today because they violate the requirement that lenders must verify the borrower’s ability to repay before approving a mortgage.
Non-Conforming Loan
A loan that doesn’t conform to guidelines established by the government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac. Sometimes also referred to as a jumbo loan.

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