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.

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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