Category: M

In the event the borrower dies before paying off the mortgage, this term life insurance pays off the home mortgage balance. It is bought to protect the family from losing its home and is paid for by the borrower/mortgagor.

Secured under a mortgage agreement against real property this is an advanced loan installment.

Throughout the accounting period on the balance sheet principal interest payment transactions are recorded. The balance is transferred to the next accounting year if the principal is unpaid at the end of the accounting period.

Usually included as an attachment as a part of an insurance policy, this type of provision makes an insurance claim payable to both a policy holder, as the mortgagor, as well as the mortgagee. Or, it indemnifies a mortgagee up to the security interest amount stated.

Written confirmation from a buyer’s bank to a property seller that the buyer will complete the purchase as the buyer’s mortgage loan will occur.

the term applied to the contract where a person binds his property to another should he not pay a loan.

A person servicing a loan for a fee for someone else. A mortgage banker differs because the banker originates, sells, and services the mortgage loan. A mortgage broker differs by not originating or servicing mortgage loans, but finds various lenders as buyers, earning income from service fees.

The issuing firm’s specified assets are collateral in a mortgage for this corporate loan.

Collateralized property secures the mortgage for this debt.

A type of insurance that protects the borrower from default.