Mortgage Glossary, Loan
Terms and Economic Terms for Interest Only Loans
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Mortgage Glossary - F Terms
Fair Housing Act: a
law that prohibits discrimination in all facets of the homebuying
process on the basis of race, color, national origin, religion,
sex, familial status, or disability.
Fair market value: the
hypothetical price that a willing buyer and seller will agree upon
when they are acting freely, carefully, and with complete knowledge
of the situation.
Fannie Mae: Federal National
Mortgage Association (FNMA); a federally-chartered enterprise owned
by private stockholders that purchases residential mortgages and
converts them into securities for sale to investors; by purchasing
mortgages, Fannie Mae supplies funds that lenders may loan to potential
homebuyers.
FHA: Federal Housing Administration;
established in 1934 to advance homeownership opportunities for all
Americans; assists homebuyers by providing mortgage insurance to
lenders to cover most losses that may occur when a borrower defaults;
this encourages lenders to make loans to borrowers who might not
qualify for conventional mortgages.
Fixed-rate mortgage: a
mortgage with payments that remain the same throughout the life
of the loan because the interest rate and other terms are fixed
and do not change.
Flood insurance: insurance
that protects homeowners against losses from a flood; if a home
is located in a flood plain, the lender will require flood insurance
before approving a loan.
Foreclosure: a legal process in which mortgaged
property is sold to pay the loan of the defaulting borrower.
Freddie Mac: Federal
Home Loan Mortgage Corporation (FHLM); a federally-chartered corporation
that purchases residential mortgages, securitizes them, and sells
them to investors; this provides lenders With funds for new homebuyers.
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