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LOAN TYPES

For a full list and description of available loan types click below.
Available Loan Types
PROPERTY TYPES

For a full list and description of eligible property types click below.
Eligible Property Types
 
 

GLOSSARY
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Management Fee
The amount charged by an independent company for the day-to-day management of a property. Typically based upon a percentage of the property’s income.
Margin
The difference between the interest rate and the index on an adjustable rate mortgage. The margin remains stable over the life of the loan. It is the index which moves up and down.
Market and Feasibility Study
A detailed analysis of activities in a market with regard to such influences as location, demand and competition, which may or may not affect the value of property. Includes an analysis of a real estate project to determine the most profitable use and the likelihood of the proposed use being a financial success. The study is often used by the promoter or developer to encourage would-be investors to participate in the venture and to assist lenders in making their decision whether or not to loan the necessary funds.
Market Approach
A method of appraising property by analyzing sales prices of similar properties (comparables) recently sold.
Market Rent
The rental income that a property is likely to command in the under current market conditions. Market rent, also referred to as economic rent, and may be either higher or lower than what the property is actually renting for under the terms of a lease.
Maturity
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.
Member, Appraisal Institute (MAI)
An accredited third party appraiser and member of the American Institute of Real Estate Appraisers.
Merged Credit Report
A credit report which reports the raw data pulled from two or more of the major credit repositories. Contrast with a Residential Mortgage Credit Report (RMCR) or a standard actual credit report.
Mezzanine Loan
A second mortgage. It usually bears interest at a higher rate than secured loans and sometimes carries the option to give the lender a stake in the equity.
Mixed-Use Commercial Project
A real estate development that contains two or more different uses all intended to be harmonious and complementary. An example would include a high-rise building with retail shops on the first two floors, office space on floors three through ten, apartments on the next ten floors, and a restaurant on the top floor.
Modification
Occasionally, a lender will agree to modify the terms of your mortgage without requiring you t refinance. If any changes are made, it is called a modification.
Mortgage
A legal document that pledges a property to the lender as security for payment of a debt. Instead of mortgages, some states use First Trust Deeds.
Mortgage Banker
A financial middleman who, in addition to bringing borrower and lender together, makes loans, packages them, and sells the packages to both primary and secondary investors. Usually the mortgage banker continues to service the loan (collect debt service, pay property taxes, handle delinquent accounts, etc.) even after the loan has been packaged and sold. For this management service a small percentage of the balance paid to the investor goes to the mortgage banker. Quite often the loan origination fee or finder's fee charged the borrower is more than offset by a lower interest rate from a lender not directly accessible to the borrower.
Mortgage Broker
A person who brings together borrower and a lender and in return is paid a finder's fee. This finder's fee is usually equal to one percent or so of the amount borrowed and is normally paid by the borrower. Certain sources of funds, particularly insurance companies, do not always deal directly with the person looking for capital; rather, they work through a mortgage broker. Normally, the mortgage broker is not involved in servicing the loan once it is made and the transaction is closed.
Mortgage Constant
The relationship between annual mortgage loan requirements and the initial mortgage loan principal, expressed as a decimal or percentage, for level-payment mortgage loans. Used for converting debt service into mortgage loan value.
Mortgage Correspondent
A person authorized to represent a financial institution in a particular geographic area for the purpose of placing loans.
Mortgage Securities Pool
A method by which securities backed by the value of specific real estate mortgages are issued in the financial market for investment purposes. Such securities, because they are mortgage-backed, are more marketable and are generally issued with a lower rate of interest than if no such backing existed.
Mortgage-Backed Securities
Securities purchased by investors that are secured by mortgages. Such securities are also known as pass-through securities since the debt service paid by the borrower is passed through to the purchaser of the security.
Mortgagee
The lender in a mortgage agreement.
Mortgagor
The borrower in a mortgage agreement.
Multidwelling Units
Properties that provide separate housing units for more than one family, although they secure only a single mortgage.
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