Debt Consolidation Glossary of Terms

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Glossary - M

margin
Expressed as percentage points, the amount that a lender adds to an index to arrive at the final interest rate. For example, if the index is 9 percent and the margin 2.75 percent, the final interest rate is 11.75 percent.

mortgage
A legal document that uses property as collateral to secure payment of a debt.

mortgage insurance (MI)
Mortgage insurance is a policy that insures the lender against loss should the homeowner default on a mortgage. Depending on the loan, the insurance can be issued by a government agency such as the Federal Housing Administration (FHA) or a private company. It is part of the monthly mortgage payment. See also private mortgage insurance (PMI).

mortgagee
One who lends for the purchase of property, using the property as collateral to assure payment.

mortgagor
One who borrows for the purchase of property, using the property as collateral to secure payment.