 |
|
|
|
|
GLOSSARY 'F' |
|
|
1. |
Fair Market Value:
The price at which property is transferred between a buyer and a seller, each of whom has reasonable knowledge of all the facts and neither being under any compulsion to buy or sell.
|
|
|
|
|
|
|
2. |
Federal Housing Administration (FHA):
A federal agency with the Department of Housing and Urban Development (HUD) that provides mortgage insurance for residential mortgages and sets standards for construction and underwriting.
|
|
|
|
|
|
|
3. |
Federal Home Loan Mortgage Corporation:
Popularly known as Freddie Mac. A privately owned corporation created by Congress to support the secondary mortgage market with mortgage purchase and securitization programs.
|
|
|
|
|
|
|
4. |
Federal National Mortgage Association (FNMA):
Popularly known as Fannie Mae. A privately owned corporation created by Congress to support the secondary mortgage market with mortgage purchase and securitization programs.
|
|
|
|
|
|
|
5. |
Fee Simple:
Having full title ownership of an estate.
|
|
|
|
|
|
|
6. |
FHA Loan:
A loan insured by the Federal Housing Administration open to all qualified home purchasers.
|
|
|
|
|
|
|
7. |
FHA Mortgage Insurance:
FHA requires a fee (up to 2.25 percent of the loan amount) paid at closing to insure the loan. In addition, FHA mortgage insurance requires a monthly installment of .50 percent of the loan amount. The lower the down payment, the more years the insurance must be paid.
|
|
|
|
|
|
|
8. |
Finance Charge:
The total cost a borrower must pay to obtain credit according to Regulation Z.
|
|
|
|
|
|
|
9. |
First Mortgage:
A mortgage that gives the lender a security right over all other mortgages of the property.
|
|
|
|
|
|
|
10. |
Fixed Rate Mortgage:
A mortgage where the interest rate does not change for the life of the loan.
|
|
|
|
|
|
|
11. |
Fixed Rate Mortgage:
A mortgage in which the interest rate and payments remain the same for the life of the loan.
|
|
|
|
|
|
|
12. |
Float:
The borrower chooses not to lock the interest rate.
|
|
|
|
|
|
|
13. |
Foreclosure:
A legal procedure in which a mortgaged property is sold by the lender to pay a defaulting borrower's debt.
|
|
|
|
|
|
|
14. |
Forward Commitment:
An agreement between a buyer and seller for delivery of a specific commodity at a given time in the future, at a strike price determined at present.
|
|
|
|
|
|
|
15. |
Full-Doc Loan:
This refers to a mortgage loan where the borrower(s) verify all of their personal income.
|
|
|
|
|
|
|
16. |
Fully Amortized Fully Indexed Rate:
A mortgage which as a zero balance at the end of the mortgage term. The index plus the margin for the adjustable rate mortgage.
|
|
|
|
|
|
|
17. |
Funding:
Payment of loan money by a lender to a borrower to purchase real estate. Also the payment of money by investors to lenders for mortgages sold to them by the lender.
|
|
