Mortgage Glossary

Market Value

The highest price that a buyer-ready, willing, and able, but not compelled to buy-would pay, and the lowest price a seller-ready, willing, and able but not compelled to sell-would accept. Market value is the basis for the "listing price" or the "asking price" of a home.

Manufactured Housing

Factory-built or prefabricated housing, including mobile homes.

Mortgage

This is a legal document that pledges real property (such as a home) to the lender as security for the repayment of a debt.

Mortgage Banker

An individual, firm, or corporation that originates, sells, and/or services loans secured by mortgages on real property.

Mortgage Broker

A firm or individual who, for a commission, matches borrowers and lenders. A mortgage broker takes applications and sometimes processes loans, but generally doesn't use its own funds for closing.

Mortgagee

The mortgage loan lender

Mortgagor

The mortgage loan borrower who pledges property as a security for a debt.

Multiple Listing Service (MLS)

A service provided by the Board of Realtors® which renders access to real estate listings of properties for sale or lease.

Net Income

Your net income is your after-tax pay. It is the money you receive after all tax withholdings, including Social Security, have been made from your gross income. (See Disposable Income..)

Open-Ended Credit (Non-Installment or Revolving Credit)

This is a pre-approved loan of a specified amount of money for an unlimited period of time. You can use as little or as much of your credit line whenever you want. However, if you reach your credit limit, you must pay off some of your balance before you can charge any more to the account. A home equity line of credit is an example of open-ended credit.