GLOSSARY OF MORTGAGE TERMS

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MARKET VALUE:
THE HIGHEST PRICE, (IN TERMS OF MONEY), WHICH A PROPERTY WILL BRING TO A SELLER IF EXPOSED FOR A SALE ON THE OPEN MARKET. GIVEN A REASONABLE AMOUNT OF TIME.

MATURITY DATE:
THE DATE IN WHICH A MORTGAGE CONTRACT EXPIRES. THE BORROWER MUST EITHER RENEW THE MORTAGE OR PAY THE PRINCIPAL BALANCE
OUTSTANDING AT MATURITY TO THE LENDER. THIS IS SOMETIMES REFERRED TO AS THE RENEWAL DATE.

MORTGAGE:
A CONVEYANCE OF PROPERTY TO A CREDITOR AS SECURITY FOR PAYMENT OF A DEBT WITH RIGHT TO REDEMPTION BY THE BORROWER UPON PAYMENT OF THE DEBT.

MORTGAGE BROKER:
A PERSON WHO, FOR REMUNERATION, NEGOTIATES FOR OTHER PARTIES, THE BUYING, SELLING, OR ARRANGING OF A MORTGAGE ON A PARTICULAR PIECE OF PROPERTY.

MORTGAGE BACKED SECURITIES (MBS):
SECURITIES PURCHASED BY INVESTORS THAT ARE SECURED BY MORTGAGES. SUCH SECURITIES ARE ALSO KNOWN AS PASS-THROUGH SECURITIES SINCE THE DEBT SERVICE IS PAID BY THE BORROWER AND IS PASSED THROUGH TO THE PUCHASER OF THE SECURITY.

MORTGAGEE:
A CREDITOR OR LENDER IN A MORTGAGE AGREEMENT. THE ONE WHO LOANS THE MONEY.

MORTGAGOR:
THE BORROWER/PURCHASER WHO SIGNS FOR THE DEBT MORTGAGE. THE ONE WHO PLEDGES PROPERTY THROUGH A MORTGAGE TO SECURE A LOAN.

MORTGAGE LIFE INS.:
A FORM OF REDUCING TERM INSURANCE RECOMMENDED FOR ALL MORTGAGORS. IF YOU DIE THE INTENT IS TO PROTECT SURVIVORS (THE ESTATE) FROM THE LOSS OF THEIR HOME, AS THE MORTGAGE DEBT WILL BE PAID UPON DEATH.

MORTGAGE PRIORITY:
THIS IS THE PRIORITY OF THE MORTGAGES PLACED ON THE PROPERTY. IF THE MORTGAGES (1ST AND 2ND) ARE IN DEFAULT AND THE PROPERTY
MUST BE SOLD TO RECOUP THE MORTGAGE LOANS. THEN THE 1ST MORTGAGE WILL HAVE PRIORITY AND WILL BE PAID OUT OF THOSE PROCEEDS. THE 2ND MORTGAGE WILL RECEIVE ONLY THE REMAINING PROCEEDS.

MORTGAGE TERM:
THE NUMBER OF YEARS OR MONTHS OVER WHICH YOU PAY A SPECIFIED INTEREST RATE. TERMS USUALLY RANGE FROM 6 MONTHS TO 10 YEARS.