Gnomenclature

Mania is an expression that describes a self-reinforcing group psychology that affects market behavior. Manias are triggered when investors feel they have to have a particular investment because everybody else seems to be buying it. Historically, this type of behavior has affected everything from tulip bulbs to cryptocurrencies.

Market cycle is a term used to describe a period which contains both a rising and a falling phase of financial market prices. It is commonly used in connection with the stock market. While market prices may go up or down each day, a market cycle generally describes a period when the market has gone through both a sustained rise and a sustained decline.

Minimum monthly payment is the least amount required to be paid each month on a credit card balance or similar debt. While this amount is often relatively low, you can reduce interest charges by paying more than the minimum amount due.

Monetary policy comprises a variety of tools the Federal Reserve uses to try to control inflation and promote full employment. The most prominent of these tools is the ability to raise and lower certain interest rates.

Monetary policy can also include providing liquidity to banks and businesses and buying or selling income securities to influence long-term interest rates.

Mortgage is a loan which uses the home as collateral for repayment. A mortgage may be used to finance the purchase of a home or to borrow against equity in a home you already own.

Mortgage insurance protects lenders in case a borrower fails to meet their mortgage obligations. It covers the lender in case the value of the home after foreclosure fails to meet the full amount owed. Mortgage insurance is often a requirement for mortgages with a low down payment. It is not to be confused with homeowners insurance.

Mortgage points are a percentage of a mortgage which is paid up front by the buyer. Origination points serve as a fee for initiating the mortgage. Discount points are paid in return for lowering the interest rate on the mortgage.