Glossary of Terms
Mortgage. Real Estate & Insurance
- Maintenance is the monthly charge paid by the co-operative tenant/shareholders to cover the building's operative costs, real estate taxes and debt service on the building's underlying mortgage.
- Market Value
- The Market Value is the most probable price that a property should bring if exposed for sale in the open market for a reasonable period of time, with both the buyer and seller aware of current market conditions, neither being under duress. It's the Highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.
- Master Association
- Owner's association in a large condominium or PUD project that is made up of representatives from associations covering specific areas within the project. In effect, it is a second level association that handles matters affecting the entire development, while the first level associations handle matters affecting their particular portions of the project.
- MIXED-USE PROPERTY
- A property in which a portion is used for commercial or retail purposes and the other portion is used for residential purposes. A property can also be considered mixed use if different combinations of uses are present such as commercial/industrial or residential/industrial. For example, a multi-unit dwelling with the front unit used as a commercial store and the back unit used as a dwelling.
- MODIFICATION AGREEMENT
- In the mortgage lending industry, a written directive to the title company to correct a typographical error on instructions to title.
- Monthly Operating Income
- Income from the rental of an investment property that is determined by reducing the annual effective gross income for the property by the annual operating expenses and dividing the result by 12. We use this in calculating whether a borrower who will occupy one unit of a two (2) to four (4)-family investment property as his or her principal residence qualifies for a mortgage.
- Mortgage Broker
- A Mortgage Broker is the real estate professional who represents an array of banks seeking to issue mortgages. This person meets with a customer, assists with the mortgage application and effectuates the mortgage process on behalf of the borrower and the bank. Generally, the mortgage broker is paid a fee by the bank for this service. Is a firm or individual who brings the borrower and lender together, receiving a commission if a sale results. A mortgage broker does not retain servicing.