Page 133 - The Informed Fed--Hearn Wealth Management

Mortgage Broker: A Mortgage Broker acts as an intermediary between

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

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

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