Margin: The agreed upon mark up of the Index value on an Adjustable Rate Mortgage. See Adjustable Rate Mortgage.

Market Value: The going rate for any commodity, be it a house, an interest rate, or the price of eggs.

Merchant Discount Fee: The amount of the fee that a merchant pays his financial institution to process credit card transactions. The rate and cost is determined by a variety of factors with volume and risk factor being the factors with greatest bearing.

Mileage Allowance or Mileage Limitation: The specific number of miles a leased car or vehicle may be driven over the course of the lease. Any additional miles will be charged an additional fee per mile.

Minimum Payment: The smallest payment that a borrower can make on his loan or credit card payment. Of course, the smallest payment may not be sufficient to cover the full interest charges on the loan and may string out the balance on that loan indefinitely.

Monthly Periodic Rate: The annual interest rate on any loan divided by 12.

Mortgage: A loan secured by an interest in real estate. In some states, the term mortgage also describes the document signed to grant the lender an interest in the property.

Mortgage Banker: A company that originates real estate loans that they intend to retain the servicing on those loans. It is also used to define lenders who loan their own funds for real estate loans. And lastly, it is used to describe a loan officer who works for a firm that loans their own money for real estate loans.

Mortgage Broker: An intermediary agency or business whose loan officers bring together clients seeking real estate loans and lenders who wish to loan money. All of this being done for a fee. A loan officer or loan agent can work for a broker, a bank, credit union, thrift, or a savings and loan agency. The borrower may not be able to tell any difference between the loan officer of any one particular agency. Usually a mortgage broker is one who has been in the business a long time and has amassed a great deal of expertise in dealing with multiple lenders. That experience can give the borrower an edge as far as the vast amount of loan programs available to them through the mortgage broker. (written with bias by a loan broker!)

Mortgage Insurance (MI): Insurance required by a lender for home loans where the mortgage or deed of trust is over 80% of the value of the property. It is common for borrowers to obtain a 1 st and a 2 nd mortgage to avoid mortgage insurance.

Mortgage Insurance premium (MIP): The insurance premium paid by borrowers using FHA financing on their home loans.

Mortgage Modification: An option that may be able to be worked out for a borrower in risk of losing his home. The lender and borrower may be able to re-work the mortgage or trust deed and note to accommodate a borrowers’ problem with paying the mortgage. ALWAYS call your lender if you have problems meeting your obligations! You will be happily surprised how much they want to work with you so that you keep your house and they keep your payments coming in!

Mortgagee: The lender of a real estate loan.

Mortgagor: The borrower on a real estate loan.

Manufacturer’s Suggested Retail Price (MSRP): The suggested price for an automobile or other vehicle. This is highly touted in car sales advertising.