Philippine Real Estate Glossary

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Manufactured Housing
Homes and dwellings that are not built at the home site and are moved to the location are considered manufactured housing. Manufactured housing units must be built on a permanent chassis at a factory and then transported to a permanent site and attached to a foundation. All manufactured homes must be built to meet set standards. The standards focus on such aspects as design, strength, energy efficiency, and fire resistance.

Margin
For an adjustable-rate mortgage (ARM), the amount that is added to the index to establish the interest rate on each adjustment date, subject to any limitations on the interest rate change.

Marginal Land
Land which barely pays the cost of working or using.

Marketable Title
A merchantable title: a title free and clear of objectionable liens and encumbrances.

Market Price
The price paid regardless of pressures, motives, intelligence.

Market Value
The price a willing buyer, and a willing seller agree on.

Master Association
A homeowners' association in a large condominium or planned unit development 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.

Material Fact
A fact is material if it is one which the agent should have realized would be likely to affect the judgment of the principal in giving his consent to the agent to enter into the particular transaction on the specified terms.

Maturity
The date on which the principal balance of a loan, bond, or other financial instrument becomes due and payable.

Maximum Financing
A mortgage amount that is within 5 percent of the highest loan-to-value (LTV) percentage allowed for a specific product. Thus, maximum financing on a fixed-rate mortgage would be 90 percent or higher, because 95 percent is the maximum allowable LTV percentage for that product.

Mechanics Lien
A lien created by law which exists in favor of persons who have performed services or furnished materials in the erection or repair of a building.

Meter and Bounds
Measurements and boundaries. A term in describing the boundary lines of land, setting forth all the boundary lines, together with their terminal points and angles.

Money Market Account
A savings account that provides bank depositors with many of the advantages of a money market fund. Certain regulatory restrictions apply to the withdrawal of funds from a money market account.

Money Market Fund
A mutual fund that allows individuals to participate in managed investments in short-term debt securities, such as certificates of deposit and Treasury bills.

Monthly Fixed Installment
That portion of the total monthly payment that is applied toward principal and interest. When a mortgage negatively amortizes, the monthly fixed installment does not include any amount for principal reduction.

Monthly Payment Mortgage
A mortgage that requires payments to reduce the debt once a month. Your monthly mortgage payment is composed of four components. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance. All four of these elements are often referred to as PITI. Your monthly mortgage payment due may be mailed to you in a book of coupons each year, or in a separate coupon every month. Ask your lender if the automated underwriting system is used, which may reduce costs associated with your mortgage.

Monument
A fixed object and point establishment by surveyors to establish land locations.

Moratorium
The temporary suspension, usually by status of the enforcement of liability for debts.

Mortgage
An instrument recognized by law by which property is hypothecated to secure the payment of a debt or obligation; the procedure for foreclosure in the vent of default establishment by statute.

Mortgage Banker
A company that originates mortgages exclusively for resale in the secondary mortgage market. Mortgage companies originate and service mortgages. In other words, they make loans to consumers. Mortgage companies then typically sell these loans to other lenders and investors. Some mortgage companies may be subsidiaries of depository institutions or their holding companies but do not receive money from individual depositors.

Mortgage Banking Companies
Mortgage companies originate and service mortgages. In other words, they make loans to consumers. Mortgage companies then typically sell these loans to other lenders and investors. Some mortgage companies may be subsidiaries of depository institutions or their holding companies but do not receive money from individual depositors.

Mortgage Broker
An individual or company that brings borrowers and lenders together for the purpose of loan origination. Mortgage brokers typically require a fee or a commission for their services. A mortgage broker has professional expertise that can assist mortgage seekers in finding the best loan for them. The mortgage broker is also experienced in offering many applicable financing options for a consumer's specific needs.

Mortgage Insurance
A contract that insures the lender against loss caused by a mortgagor's default on a government mortgage or conventional mortgage. Mortgage insurance can be issued by a private company or by a government agency. Depending on the type of mortgage insurance, the insurance may cover a percentage of or virtually all of the mortgage loan.

Mortgage Life Insurance
A type of term life insurance often bought by mortgagors. The amount of coverage decreases as the principal balance declines. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds.

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.

Multiple Listing
A listing is a right to sell, taken by a member of an organization composed of real estate brokers, with the provisions that all members will have the opportunity to find an interested client.