Glossary Letter: M

Mortgage points, also known as loan discount points or discount points, are upfront fees paid by the borrower to the lender at closing to lower the interest rate on a mortgage. Each point typically costs 1% of the loan amount and reduces the interest rate on monthly mortgage payments. Points can be deducted over the… Continue reading Mortgage Points

A mortgage contingency is a clause in a real estate purchase agreement that allows the buyer to back out of the deal if they are unable to secure financing by a specified date. This clause protects the buyer from being legally obligated to purchase the property without an approved mortgage.  Understanding mortgage contingencies is vital… Continue reading Mortgage Contingency

The maturity date of a loan is the final date on which the principal amount of the loan must be repaid in full to the lender. It marks the end of the loan term, after which any outstanding balance is due. The maturity date can vary depending on the type and terms of the loan,… Continue reading Maturity Date

Mortgage insurance is a policy that protects lenders from financial loss if a borrower defaults on their mortgage. There are two main types: private mortgage insurance (PMI) for conventional loans and government mortgage insurance for FHA loans.  Mortgage insurance lowers the risk for the lender, allowing borrowers to qualify for loans they might not otherwise… Continue reading Mortgage Insurance

A mortgage is a type of loan used to purchase real estate, typically a house or property. The borrower agrees to repay the loan over a set period, usually 15 to 30 years, with regular monthly payments. These payments include both principal (the original amount borrowed) and interest. The property itself serves as collateral for… Continue reading Mortgage