Page 133 - The Informed Fed--Hearn (edited 10.29.20)

Mortgage Broker: A Mortgage Broker acts as an intermediary between
a borrower and a lender. A broker’s expertise is to assist the borrower in
identifying mortgage lenders and products that they might not identify
otherwise.

Mortgage Insurance (MI): Mortgage Insurance protects the lender
against the default of higher risk loans. Most lenders require mortgage
insurance on loans where the loan-to-value ratio is higher than 80% (less
than 20% equity).

Municipal Bonds: A bond offered by a state, county, city or other
political entity (such as a school district) to raise public funds for special
projects. The interest received from municipal bonds is often exempt
from certain income taxes.

Mutual Funds: Mutual Fund is a pooling of investor (shareholder)
assets, which is professionally managed by an investment company for
the benefit of the fund’s shareholders. Each fund has specific investment
objectives and associated risk. Mutual funds offer shareholders the
advantage of diversification and professional management in exchange
for a management fee.

Net asset value: The value of all the holdings of a mutual fund, less the
fund’s liabilities (also describes the price at which fund shares are
redeemed).

Net worth: Your net worth is the difference between your total assets
and total liabilities.

Non-conforming loan: A loan that does not conform to Federal
National Mortgage Association (FNMA) or Federal Home Loan

132