The amount a lender adds to the index on an adjustable
rate mortgage to establish the adjusted interest rate. For instance,
if a one-year ARM is priced at a margin of 300 basis points (100 basis
points is equal to one percent) over the yield on the one-year constant
maturity-adjusted Treasury bill, and the T-bill's yield is 6.5 percent,
the one-year ARM rate would be 9.5 percent.
Marketable or Merchantable Title
A title which is free from reasonable doubt of defect
which can be readily sold or mortgaged to a reasonably prudent purchaser
or mortgagee; a title free from material defects or grave doubts and
reasonably free from possible litigation.
The price, in terms of dollars, which a ready and able
buyer, not forced to buy, would pay and which a ready and willing seller,
not forced to sell, would accept, assuming further that both parties
are fully informed, act reasonably, and have sufficient time to consider
the transaction with due care.
A lien created by statute which exists against real property
in favor of persons who have performed work of furnished materials for
the improvement of the real estate.
A conditional conveyance of property as security for
the payment of a debt or fulfillment of some obligation. Upon payment
of the debt or performance of the obligation the mortgage becomes void.
Money paid to insure the mortgage when the down payment
is less than 20 percent. See private mortgage insurance, FHA mortgage
Multiple Listing Service
An arrangement among real estate brokers whereby they
share their listings. The commission is divided, according to previous
agreement, between the listing broker and the selling broker.
One of the essential elements of a contract, often called
Meeting of the Minds; the agreement of the parties to the contract,
mutually consenting to be bound by the exact terms thereof.