macadam
A commonly used method of paving with crushed stone, named for John L. Macadam (1756-1836), a Scottish engineer. The road may be water bound or coated with asphalt or tar.

main girder
The main support running between foundation walls to carry the weight of a floor.

main water shut-off valve
The primary valve that halts the flow of water from the water meter into the home.

maintenance fee
The monthly assessment paid by homeowners' association members for the repair and maintenance of common areas.

managed-competition lots
Lots in which buyers choose between one of several builders.

mansard roof
A roof with four sides that slope upward from the roof edge to a square peak.

mantel
The facing of stone, marble, or other material around a fireplace.

manufactured housing
Prefabricated homes that can range from simple trailers to large dwellings.

margin
The difference between the interest rate and the index on an adjustable rate mortgage. The margin remains stable over the life of the loan. It is the index which moves up and down.

market conditions
Factors affecting the sale and purchase of homes at a particular point in time.

market value
The price that a piece of property sells for at a particular point in time.

marketable title
A good or clear title that is free of defects.

masonry
The brick or stone work on a building.

master-planned community
A suburban plan that includes homes and commercial, work, educational, and community facilities.

mastic
Construction adhesive, usually applied with a caulking gun.

material defect
Any defect in a specific property that could either affect a buyer's decision to purchase it or affect the property's value, such as a cracked foundation.

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

maximum financing
A loan amount within 5 percent of the highest loan-to-value ratio allowed for a property.

mechanic's lien
Subcontractors or suppliers sometimes will file an encumbrance, or mechanic's lien, against a property to seek payment.

mechanical systems
A home's plumbing, wiring, heating, and cooling systems.

median price
The price of the house that falls in the middle of the total number of homes for sale in an area.

mediation
A dispute-resolution process in which a neutral party works to resolve contract differences.

merged credit report
A credit report which reports the raw data pulled from two or more of the major credit repositories. Contrast with a Residential Mortgage Credit Report (RMCR) or a standard factual credit report.

metal valley
A valley type roof joint lined with metal such as lead, copper, zinc or galvanized steel.

meter
A device that measures electrical current or water flow to a property.

meter pan
A piece of equipment through which the service conductor runs.

metes and bounds
A time-honored land surveying method of describing land in terms of shape and boundary dimensions.

mint condition
Mint condition, or blue-ribbon condition, refers to a house that looks as close to new as possible.

miter
The manner in which two boards that meet at right angles are cut so that ends do not show. Miters are usually 45-degree cuts.

mixed-income housing
A neighborhood that contains houses of widely varying prices.

mixed-use development
A project that combines several different functions, such as residential space above a commercial establishment or an entire development combining commercial, residential, and public accommodations.

MLS (multiple listing service)
The service combines the listings for all available homes in an area, except For Sale By Owner (FSBO) properties, in one directory or database.

modification
Occasionally, a lender will agree to modify the terms of your mortgage without requiring you t refinance. If any changes are made, it is called a modification.

modified annual percentage rate (APR)
The modified APR is an index of loan cost based on the standard APR and adjusted for the time the borrower expects to hold the loan.

moisture barrier
Treated paper, metal or plastic that retards or prevents moisture from seeping into walls or floors.

molding
Decorative trim applied to walls, ceilings, and window and door openings.

money market account
Accounts that work like money market funds and allow individual investors to participate in managed investments and withdraw funds under most conditions.

money market funds
A mutual fund that pools the resources of individuals to invest in certain managed investments.

monolithic slab
A slab that is part of the footings.

monthly association dues
A payment due monthly to a homeowners' association, to be used for maintenance and communal expenses. Condominiums, townhouse complexes, and planned unit developments (PUDs) may require monthly homeowners' association dues.

mortar
Cement-based material that provides the base for brick, stone, and other masonry materials.

mortgage
A legal document that pledges a property to the lender as security for payment of a debt. Instead of mortgages, some states use First Trust Deeds.

mortgage banker
 A mortgage banker is generally assumed to originate and fund their own loans, which are then sold on the secondary market, usually to Fannie Mae, Freddie Mac, or Ginnie Mae. However, firms rather loosely apply this term to themselves, whether they are true mortgage bankers or simply mortgage brokers or correspondents.

mortgage broker
A mortgage company that originates loans, then places those loans with a variety of other lending institutions with whom they usually have pre-established relationships.

mortgagee
A bank or other financial institution that lends money to the borrower. The borrower is considered the mortgagor.

mortgage acceleration clause
A clause that allows a lender to demand repayment of the entire loan balance in a lump sum under certain circumstances, such as when the home is sold, title is changed, the loan is refinanced, or the borrower defaults on a scheduled payment.

mortgage broker
A company that matches lenders with prospective borrowers who meet the lender's criteria. The mortgage broker does not make the loan, but receives payment from the lender for services.

mortgage insurance (MI)
Insurance that covers the lender against some of the losses incurred as a result of a default on a home loan. Often mistakenly referred to as PMI, which is actually the name of one of the larger mortgage insurers. Mortgage insurance is usually required in one form or another on all loans that have a loan-to-value higher than eighty percent. Mortgages above 80% LTV that call themselves "No MI" are usually a made at a higher interest rate. Instead of the borrower paying the mortgage insurance premiums directly, they pay a higher interest rate to the lender, which then pays the mortgage insurance themselves. Also, FHA loans and certain first-time homebuyer programs require mortgage insurance regardless of the loan-to-value.

mortgage insurance premium (MIP)
The amount paid by a mortgagor for mortgage insurance, either to a government agency such as the Federal Housing Administration (FHA) or to a private mortgage insurance (MI) company.

mortgage life and disability insurance
A type of term life insurance often bought by borrowers. The amount of coverage decreases as the principal balance declines. Some policies also cover the borrower in the event of disability. In the event that the borrower dies while the policy is in force, the debt is automatically satisfied by insurance proceeds. In the case of disability insurance, the insurance will make the mortgage payment for a specified amount of time during the disability. Be careful to read the terms of coverage, however, because often the coverage does not start immediately upon the disability, but after a specified period, sometime forty-five days.

Mortgage Note 
(also known as a promissory note) is the document that contains a promise to repay the loan. It indicates the terms and conditions of your loan, and how it will be repaid. It specifies the amount of the monthly payment, when it is due, and the number of payments you must make.

mortgagor
The borrower in a mortgage agreement.

mortise lockset
A doorknob and latch set designed to fit into a rectangular pocket cut into the edge of a door.

motivated buyer
A buyer with a strong incentive to make a purchase.

motivated seller
A seller with a strong incentive to make a deal.

move-in condition
A house that is ready for a new occupant.

move-up buyer
A buyer who has purchased a home before and is looking for a bigger or more expensive home.

mud
slang- concrete or mortar; drywall taping compound.

mullion
A vertical dividing bar between windowpanes or panels.

Multi-dwelling units
Properties that provide separate housing units for more than one family, although they secure only a single mortgage.

multifamily mortgage
A mortgage on a multifamily dwelling (typically an apartment building) with more than four families.

multiple offers
More than one purchase offer made on a property. Multiple offers commonly occur in seller's markets or hot neighborhoods.

municipal housing inspector
Inspectors employed by cities or counties to check all construction sites and verify that contractors are meeting building codes.

muntin
A wooden division that separates panes of glass in a multi-paned window or door.