Dictionary
- F
Mortgage terms and definitions for
home buyers, home sellers, and real estate consumers. Use
the links below to find the word you're looking for.
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Fair
Credit Reporting Act -
A law that protects consumer that regulates the reporting
of consumer credit by agencies and establishes procedures
for correcting errors on an individual record.
Fannie
Mae (FNMA) -
The Federal National Mortgage Association is a congressionally
chartered, shareholder-owned company. This organization
is the nation's largest supplier of home mortgage funds.
Fannie
Mae's Community Home Buyer's Program -
A program that offers flexible underwriting guidelines to
subsidize a low- to moderate-income family's purchase of
a home. The program usually decreases the total amount of
cash needed to purchase a home.
Federal
Housing Administration (FHA) -
An agency under the U.S. Department of Housing and Urban
Development (HUD), it insures loans made by approved lenders
to qualified borrowers, in accordance with its regulations.
Fees
-
Up-front costs associated with a loan. Clicking on the numeric
value shown under the "Fees Detail" column on the quotes
results page will display detailed information about the
financial institution's fees and requirements pertaining
to that rate.
Fee
Simple -
The best title that one can obtain; unqualified and conveys
the highest bundle of rights.
FHA
Loan -
A government-backed mortgage loan supported by the US FHA
and the Department of Housing and Urban Development (HUD).
Finance
Charge -
The total dollar amount your loan will cost you. It includes
all interest payments for the life of the loan, any interest
paid at closing, your origination fee and any other charges
paid to the lender and/or broker. Appraisal, credit report
and title search fees are not included in the finance charge
calculation.
Firm
Commitment -
A lender's agreement to provide a loan to a specific borrower
on a specific property.
First
Mortgage -
A mortgage that has priority over other mortgages.
Fixed-Rate
Mortgage -
A mortgage where the interest rate does not change for the
life of the loan.
Float
-
Between the time of application and closing, a borrower
may choose to bet on interest rates decreasing by electing
to float. Floating is essentially choosing not to lock the
interest rate. Since it is the borrower's responsibility
to lock his or her rate before (or at) closing, choosing
to float is considered risky and may result in a higher
interest rate. Request information from your lender regarding
lock procedures.
Forbearance
-
The postponement for a limited time of a portion or all
the payments on a loan when a borrower is delinquent.
Foreclosure
-
A legal procedure in which real estate is sold by the lender
to pay a defaulting borrower's debt .
401(k)/403(b)
-
An investment plan sponsored by employers that allows individuals
to set aside tax-deferred income for retirement or emergency
purposes. A 401(k) applies to private corporations, while
a 403(b) applies to non-profit organizations.
401(k)/403(b)
loan -
A loan that can be taken against the amount accumulated
in the 401(k)/403(b) plans, if so allowed by the plan administrator.
Loans against these plans are an acceptable source of down
payment for most types of other loans.
