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Mortgage Loan Glossary - 'M'

Use the alphabet letters below to navigate to the words in this glossary.

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

- M -

Margin

The amount added to the index on an adjustable rate mortgage (ARM). The margin amount remains stable over the life of the loan, but the index moves up and down.
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Maturity

The scheduled end date for a loan when it completes its term and becomes due and payable. For example, a 30-year loan reaches maturity in 30 years, and a 15-year loan reaches maturity in 15 years.
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Modification

When a lender agrees to contractually change the terms of an existing mortgage without requiring the borrower to refinance.
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Mortgage

Please see Deed of Trust.
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Mortgage Broker

An individual or company that brings borrowers and lenders together for the purpose of loan origination. They typically require a fee or compensation for their services.
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Mortgage Insurance (MI)

Mortgage guarantee insurance is an insurance policy (often called MI or PMI) that insures lenders against nonpayment or default on your mortgage. If you do not put down at least 20% of the purchase price of your new home, we typically require you to purchase mortgage insurance. Mortgage insurance payments are included in your monthly payment.

It may be possible to cancel private mortgage insurance at some point, such as when your loan balance is reduced to a certain amount. For loans on single family principal residences, federal law requires automatic termination of mortgage insurance for many borrowers when their loan balance is scheduled to reach 78% of the original property value.

For some customers, a combination 1st and 2nd mortgage is an alternative to paying for mortgage insurance. With a combo loan, you get a 1st mortgage for 80% of the purchase price, a 2nd mortgage for 10% of the purchase price, and put down 10%. Our Mortgage Consultants can help you decide whether paying mortgage insurance or getting a combo loan makes more sense for you. Call 1-800-248-4638 .


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Mortgage Insurance Premium (MIP)

A one-time fee required for insurance on an FHA mortgage. FHA mortgages usually require MIP, which is about 1% of the loan amount and paid at closing.
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Mortgagee

The lender in a mortgage agreement.
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Mortgagor

The borrower in a mortgage agreement.
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