Market Value
The price in terms of cash or its equivalent upon which a willing buyer and a willing seller will agree, where neither is under any undue pressure and both are typically motivated, have adequate knowledge, and are acting in their own best interest. This concept of value assumes that there is sufficient activity in the marketplace to generate enough buyers and sellers so that no one of them controls the price. Each party is also acting in his or her best interest and is fully informed as to market conditions. Finally, individual financing and taxation consequences are not considered, the property is exposed on the market for a reasonable period of time, and the seller is capable of conveying marketable title. Market value is an ideal standard which is very seldom achieved in real-world real estate markets; nevertheless, this is ordinarily the objective of most appraisals.

Maturity
The date when a note or negotiable instrument is due and payable.

Maximum Loan Amount
The largest dollar figure in terms of how much money can be borrowed under a specific government program, such as a subsidized housing program or an project.

Mean Home Price (of New or Existing Homes Sold)
The mathematical average of the prices of all homes sold in the period. The mean price of homes sold generally runs higher than the median price due to the number of very high-priced homes. The National Association of REALTORS® usually releases home price figures for existing homes sold on the 25th of the month for the previous month; corresponding figures for new homes are released a few days later by the Bureau of Census.

Median Home Price (of New or Existing Homes Sold)
Of all the homes sold during the particular period, precisely half sold for more than the median price, and half sold for less. When determining the median, only one home price matters - that of the home in the middle. Because homes sold for exceedingly low or high values only count as one unit when determining the median - i.e., their values don't matter - median home prices are generally a better indicator of home price trends than mean, or average, home prices (where all the values matter). The National Association of REALTORS® usually releases home price figures for existing homes sold on the 25th of the month for the previous month; corresponding figures for new homes are released a few days later by the U.S. Census Bureau.

Minor
An infant or person who has not attained the age of majority and thus does not have the legal capacity to be bound by most contracts. Most contracts entered into by a minor are voidable at the minor's option. However, a minor may choose to ratify a contract after achieving the age of majority. A minor or infant is bound to pay the reasonable value of necessities. Necessities include food, shelter, and clothing which are appropriate for a person in the minor's station of life.

Misrepresentation
An innocent or negligent misstatement of a material fact detrimentally relied upon by an innocent party. If a person makes a misrepresentation and later learns of the mistake, a duty then arises to inform the person who is detrimentally relying on the misrepresentation. Failure to do so is fraud.

Mortgage
An interest created by a person in regards to a particular property to secure the payment of a debt or performance of some other obligation. This interest may be a lien or a conditional title interest subject to defeasance when the debt is paid or the obligation fulfilled. A borrower who gives a mortgage is called a mortgagor and the lender who receives the pledge is called the mortgagee. It is important to realize that the mortgage is given by the borrower, not the lender. The term "mortgage" is derived from the Old French term 'mort' meaning dead and "gage" meaning pledge. Thus, when a mortgage note is paid off, the pledge is canceled or becomes dead.

Mortgage Application Index-Purchase
An index published weekly by the Mortgage Bankers Association of America which gauges the number of applications submitted for the purchase of a home. The survey covers about 40% of all retail residential mortgage transactions and is released every Wednesday for the week ending the previous Friday.

Mortgage Application Index-Refinance
An index published weekly by the Mortgage Bankers Association of America which gauges the number of applications submitted for the refinancing of a home. The survey covers about 40% of all retail residential mortgage transactions and is released every Wednesday for the week ending the previous Friday.

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. If a mortgage banker is not financially strong enough to package the loan, financial help is sought from a lender, typically a commercial bank. The bank becomes a warehouse for mortgage money, and the mortgage banker draws on these funds until payment is received from the 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. Obviously, the success of the mortgage banker depends upon the ability to generate new loans. In some geographic areas mortgage bankers are the primary source for financing real estate. All mortgage bankers try to stay in constant touch with investors and are aware of changing market conditions and lender requirements. 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 bankers are involved in both commercial and residential financing and also carry out related activities, such as writing hazard insurance policies, appraising, and investment counseling. As with mortgage brokers, mortgage bankers are regulated by state law.

Mortgage Broker
A person who brings together a user of capital (borrower) and a supplier of capital (lender) and in return is paid a finder's fee. A finder's fee equal to one percent or so of the amount borrowed is normally paid by the borrower. Thus, the financial success of the mortgage brokerage firm depends upon the ability to locate available funds and to match these funds with creditworthy borrowers. 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. Thus, if you wish to borrow from certain lenders you would need to go through a mortgage broker. Normally, the mortgage broker is not involved in servicing the loan once it is made and the transaction is closed.