Wednesday, August 20th 2008
Loan Terms Glossary

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Term Definition
Margin:The amount that is added to an index rate to determine the total interest rate.
 
Market Capitalizationthe value of a company as measured by the total stockmarket price of its issued and outstanding shares. This is calculated by multiplying the number of shares by the current market price of a share. The Market Cap is also widely used as a definition of company size - hence, big corporations are usually referred to as large cap stocks (See also Small Caps)
 
Maturity The termination period of a note.
 
Mezzanine Financing or FundingLate-stage venture capital, usually the second or final round of financing prior to an IPO
 
MinipermShort term permanent financing.
 
MortgageA loan used to buy your house or commercial property, where your house or commercial property is used as security until you've paid off the loan (usually after a fixed period). There are three main types of mortgage: 1. A repayment mortgage - you pay off the loan by installments of capital and interest so that after the agreed period you have paid off all the loan 2. An interest only mortgage - you pay only interest on your mortgage and make other arrangements to repay the capital, like an endowment policy. 3. A flexible mortgage allows you to make overpayments and take payment holidays.
 
Mortgage BankerAn entity that makes loans with its own money and then sells the loan to other lenders.
 
Mortgage BrokerAn entity that arranges loans for borrowers.
 
Multi - Family Property Class AProperties that are above average in terms of design, construction and finish; command the highest rental rates; have a superior location, in terms of desirability and / or accessibility; generally are professionally managed by national or large regional management companies.
 
Multi - Family Property Class BProperties that do not possess design and finish reflective of current standards and preferences; construction is adequate; command average rental rates; generally are well maintained by national or regional management companies; unit sizes are usually larger than current standards.
 


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Glossary V1.9.2

 

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