| Letter
- F |
|
| Fair Credit Reporting Act |
A consumer protection law that protects you from misuse or negligence on behalf of the credit reporting agencies. Under this Act, there are procedures in place that you can follow in order to help remove errors from your credit report. The act also regulates what information credit reporting agencies can disclose about you and who can access your credit report. |
| |
|
| Fair Market Value |
The fair market value of a property is the price a buyer would be willing to pay and a seller would be willing to sell a property for if there were no extenuating circumstances related to the sale or purchase of the property. An appraiser can help you determine the fair market value of the property that you are interested in purchasing or selling. |
| |
|
| Fannie Mae (FNMA) |
When you purchase a home, chances are that you’re mortgage is being funded by Fannie Mae, the largest non-bank financial services company in the world. Fannie Mae (FNMA) is the Federal National Mortgage Corporation. They are a shareholder-owned company that purchases conventional mortgages and mortgages insured by the federal government so that lenders are able to free up funds to finance additional loans. |
| |
|
| FHA Mortgage |
If you take out an FHA mortgage, it means that the lender who gave you your mortgage is insured against loss by the Federal Housing Administration. You need to pay for this insurance through a combination of a monthly premium that is added to your monthly mortgage payment and a one-time upfront cost, although the upfront cost can be rolled into your mortgage loan so you can pay it off over time. This type of loan is popular because of the low down payment requirements and the lower interest rates offered, although the maximum loan amounts are also lower. |
| |
|
| FHLMC |
FHLMC is the Federal Home Loan Mortgage Corporation, also known as Freddie Mac. The company is a private corporation that was developed by congress in order to help support the secondary mortgage market. Like Fannie Mae, Freddie Mac purchases loans from lenders so lenders have additional funds that enable them to make more home loans to homebuyers. |
| |
|
| FICO |
Your FICO score is a type of credit score that was developed by the Fair Isaac Company. This type of credit scoring evaluates only the information contained in your credit file and helps a lender determine the risks associated with extending you credit. |
| |
|
| Firm Commitment |
When you receive a firm commitment from a lender, it means that the lender is agreeing to lend you a specific amount of money on a specific property at a specific interest rate. |
| |
|
| First Mortgage |
For a home purchase, this is the primary lien against a home. If for some reason your home were to go into foreclosure, the first mortgage would be paid and satisfied prior to any other mortgages or liens, except those liens imposed by legal authorities. |
| |
|
| Fixed-Rate Loans |
When you have a fixed-rate loan, it means that the initial interest rate you agreed to when you took out the loan will remain the same over the life of the loan. With this type of loan, the payment amount of your principal and interest will never change. These loans are typically for 15 to 30 year terms. |
| |
|
| FNMA |
The Federal National Mortgage Association is the largest non-bank financial services company in the world. Also known as Fannie Mae, this federally-sponsored private company purchases conventional mortgages and mortgages that are insured by the federal government in order to allow lenders to clear up funds in order to make additional home loans to more homebuyers. |
| |
|
| Freddie Mac |
Freddie Mac is the Federal Home Loan Mortgage Corporation. This company is a private corporation that was developed by congress in order to help support the secondary mortgage market. Freddie Mac purchases loans from lenders so that these lenders will have additional funds to make home loans to a greater number of homebuyers. |
| |
|
| Fully Amortized Arm |
When the monthly mortgage payment that you make to your lender each month on your adjustable rate mortgae is enough to cover the costs of the principal and interest and to fully amortize the remaining balance of your loan over the amortization term. |
| |
|
| |
| |
|
|
|
|
