Glossary of Terms

• Margin (spread)

  An amount expressed as a percentage which is added to an index to determine the interest rate on an adjustable rate loan (e.g., index rate + 2.5% margin). Different lenders and loan programs may use different margins and indexes. With an adjustable rate loan, this margin (spread) generally does not change once it is established in loan documents.
  
  
• Mortgage

  (1) A conveyance of security interest in property to secure payment of a debt.
  (2) An instrument used to encumber land as security for a debt.
  
  
• Mortgage Note

  A promissory note secured by a mortgage and executed by mortgagor at the same time as the mortgage for the amount stated in the mortgage, with the legal description of land described in the mortgage also stated in such note.
  
  
• Mortgagor

  Property owner and borrower.
  
  
  
  

• Mill Rate

  A percentage applied to the assessed valuation to determine taxes.
  
  
• Mortgage Insurance

  Insurance to protect the mortgage lender.
  
  
• Mortgagee

  A lender.