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Houston Mortgage > Glossary >
Credit Card > M 1-10
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Margin
Expressed as percentage points, the amount that a lender adds to an index to arrive at the final interest rate. For example, if the index is 9 percent and the margin 2.75 percent, the final interest rate is 11.75 percent.
MasterCard
MasterCard, a product of MasterCard International, is distributed by issuing financial institutions around the world. Card holders borrow money against a credit line and pay it back with interest if the balance is carried over from month to month.
Member bank
A commercial bank with membership in the Federal Reserve System, and which maintains reserve deposits in the Federal Reserve Bank in its district.
Merged credit report
A combined summary of one's credit history from the three largest credit bureaus: Equifax, Experian and TransUnion.
Minimum payment
The minimum amount a cardholder can pay to keep the account from going into default. Some card issuers will set a high minimum if they are uncertain of the cardholder's ability to pay. Most card issuers require a minimum payment of 2 percent of the outstanding balance.
Modification
A change in terms of the loan agreement.
Monthly periodic rate
The interest rate factor used to calculate the interest charges on a monthly basis. The factor equals the yearly rate divided by 12. See periodic rate.
Monthly Treasury Average (1 year)
An index determined by the monthly average of one-year Treasury bills. Commonly used as a benchmark for adjustable-rate mortgages.
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Houston Home Mortgage