Glossary of
Real Estate Terms

Your guide to common closing terms

Mortgage Fees

The variety of fees required during the closing process in order to obtain the mortgage. Fees may include those for the initial application, mortgage broker fees, discount points, prepaid interest, private mortgage insurance, and fees associated with specific loan products like FHA or VA mortgages.

M

Mortgage Insurance

For low-money-down loan products, lenders require private mortgage insurance (PMI) in order to secure their stake in the property in the event of a default. PMI is generally required when there is less than 20% equity in the property. Once 20% equity has been achieved, borrowers can request that the requirement be removed or can refinance to a conventional loan.

M

Mortgage Lender

A mortgage lender is a financial institution that provides mortgage loans to home buyers. A mortgage lender is represented by a loan officer who helps facilitate the process of applying for, underwriting, and approving the mortgage in preparation for settlement.

M

Mortgage Loan

A mortgage loan is a financial instrument that is used for the purchase or refinancing of real property. Mortgage loans are available with a variety of terms, including both short-term and long-term loans, fixed and adjustable-rate loans, and interest-only loans in order to accommodate a number of different purchase scenarios.

M

Multiple Listing Service (MLS)

The multiple listing service (MLS) is a database created by cooperating brokers, which allows members to see and share information about properties for sale, including specifications, photos, descriptions, and agent contact information. Multiple listing services are designed to facilitate connections among brokers, agents, and clients in order to better market available properties.

M
Thank you! Your submission has been received!
Oops! Something went wrong while submitting the form.