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| Manufacturer's Rebate |
When a car manufacturer refunds money for purchasing their vehicle. Manufacturers will often offer rebates in order to help sell slow moving cars and to reduce excess inventory. |
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| Margin |
With adjustable-rate mortgages, the interest rate percentage points a lender will add to an indexed interest rate which is used to determine your total adjusted interest rate. For example, if the index your lender uses is a rate of 5 percent and they use a 2 percent margin, the loan's total interest rate would be 7 percent. The margin is what allows your lender to cover their costs and make a profit. |
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| Merged Credit Report |
There are three main credit reporting agencies (Equifax, Experian, and TransUnion) that maintain credit reports containing the individual credit histories of consumers. A merged credit report is created by combining all three of these bureaus’ reports. Any duplicates between the reports are combined and the final report shows an accurate reflection of your complete credit history. |
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| Monroney Sticker Price |
A federally mandated label affixed to the window of new cars at car dealers, that disclose the base price of the car, any installed options, the MSRP, the freight costs and the gas mileage of the vehicle. This price is not the price you have to pay for the car and should only be used as a point of reference. |
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| Monthly Arm |
An adjustable-rate mortgage that recalculates a loan holders interest rate on a monthly basis. Since you are the one taking most of the risk with this type of loan and the lender only has to commit to the interest rate on a monthly basis, the interest rate is usually lower than the interest rates offered on other ARM rates and fixed-rate mortgages. |
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| Monthly Fixed Installment |
The part of your mortgage payment that is put towards the principal and interest of your loan. If your monthly fixed installment is not high enough to cover all of the interest and a reduction in the principal of your mortgage, it will result in a negative amortization and your loan balance will go up instead of down. |
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| Mortgage |
The legal document that pledges to a lender your real property to secure your home loan. If you do not pay the loan as agreed, the lender can foreclose on your home. Certain states will use a First Trust Deed in lieu of a mortgage. |
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| Mortgage Banker |
A mortgage originating company that originates loans and sells them on the secondary market shortly after writing the loan. Although these companies do not keep any of the loans that they originate and sell all of their mortgages on the secondary market, it is not uncommon for these companies to service your loan after they sell it. |
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| Mortgage Broker |
An independent contractor that offers loan products from a variety of lenders. The broker will act as an agent of both you and the lender in order to originate your loan. When dealing with a mortgage broker, you will generally need to pay them either a fee or commission for the services they provide you with. |
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| Mortgage Insurance |
A policy that protects your lender from loss if you were to default on the obligations of your loan. Mortgage insurance is provided by the FHA, the VA, or through private mortgage insurance. If the loan-to-value ratio on your home is higher than 80 percent, you will need to have mortgage insurance. |
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| Mortgage Life Insurance |
If you take out a mortgage life insurance policy, the balance of your mortgage would be paid off in the event of your death. This type of insurance protects your family from losing their home if you were to die. As the balance owed on your mortgage goes down, the amount of coverage on the policy also decreases. |
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| Mortgagee |
When your mortgage agreement refers to the mortgagee, it is referring to your mortgage lender. |
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| Mortgagor |
When your mortgage agreement refers to the mortgagor, it is referring to you, the borrower. |
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| MSRP |
MSRP is the acronym that stands for Manufacturer's Suggested Retail Price, also known as the sticker price or list price. This price normally does not include additional options, destination charges or taxes, title and license fees. The MSRP is not necessarily the price you will pay for the car and should be used as a starting point for negotiations. |
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