Face Interest Rate - The percentage interest rate that is shown on the
actual loan note or document.
Fair Credit Reporting Act - A federal consumer protection regulation that
controls the disclosure of credit information and establishes procedures for
correcting mistakes in your credit file.
Fair Market Value - The highest price that a willing, but not compelled,
buyer would pay, and the lowest price that a willing, but not compelled, seller
would accept.
Fannie Mae - FNMA (Federal National Mortgage Association) One of the
congressionally chartered, publicly owned companies that is the largest source
of home mortgage funds.
Federal Housing Administration - An area of the U.S. Department of Housing
and Urban Development (HUD) that insures low downpayment mortgages granted by
some lenders. The loan must meet the established guidelines of FHA in order to
qualify for the insurance.
Fee Simple - Absolute ownership of real property; the greatest possible
interest a person can have in real estate.
FHA Mortgage - A mortgage insured by the Federal Housing Administration (FHA).
FHA loans are also known as government mortgages.
First Mortgage - A mortgage that is the first loan recorded in the public record
and generally the primary loan against a property.
Fixed-rate Mortgage - A mortgage in which the monthly principal and
interest payments remain the same throughout the life of the loan. The most
common mortgage terms are 30 and 15 years. With a 30-year fixed rate mortgage
your monthly payments are lower than they would be on a 15 year fixed rate, but
the 15 year loan allows you to repay your loan twice as fast and save more than
half the total interest costs.
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Flood Certification - An inspection to determine if a property is located
in an area prone to flooding also known as a flood plain. The federal government
determines whether an area is in a flood plain. Lenders generally rely on the
flood certification to determine if flood insurance will be required in order to
obtain a mortgage. The cost of the flood
certification is considered to be a third party fee, though you may find that
all lenders do not pass this fee on to the borrower.
Flood Insurance - Insurance that protects a homeowner from the cost of
damages to a property due to flooding or high water. It is required by law that
properties located in areas prone to flooding have flood insurance. The federal
government determines whether an area is prone to flooding and considered to be
in a flood plain.
Foreclosure - The legal process in which a borrower's ownership of a
property is dissolved due to default. Typically, the property is sold at a
public auction and the proceeds are used to pay the loan in full.
Freddie Mac - FHLMC (Federal Home Loan Mortgage Corporation) One of the
congressionally chartered, publicly owned companies that is the largest source
of home mortgage funds.
Fully Amortized ARM - An adjustable-rate mortgage (ARM) with monthly payments that are sufficient to liquidate the remaining principal balance over the amortization term.
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