Bear Island Land Co., Inc.

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Dictionary of Terms

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Margin
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.
Market Value
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.
Mechanic's Lien
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.
Mortgage
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.
Mortgage Insurance
Money paid to insure the mortgage when the down payment is less than 20 percent. See private mortgage insurance, FHA mortgage insurance.
Mortgagee
The lender.
Mortgagor
The borrower.
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.
Mutual Assent
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.

 

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Ely, Minnesota's most experienced Realtors, serving Buyers and Sellers in the Ely, MN area since 1995.