Glossary
F
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 word VIEW 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.
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 word VIEW 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.
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| For additional questions please contact me at 281-650-7592 or via e-mail at kowens@closingjust4you.com |
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