For example, if the index rate is 9 percent and the margin is 3 percent, then the fully indexed rate is 12 percent. The date on which the principal balance of a loan becomes due and payable. Mortgage A legal document that uses property as collateral to secure payment of a debt. An individual or company that brings borrowers and lenders together for the purpose of loan origination . Unlike a mortgage banker , brokers do not fund the loan but work on behalf of several lenders.
Brokers typically require a fee or a commission for their services.
See broker premium . Mortgage insurance A policy that insures the lender against loss should the homeowner default on a mortgage. It is part of the monthly mortgage payment. Our printable checklist guides you through the process. Tell us for the chance to win whatever prize you choose.