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Laguna Beach Mortgage 949-495-5885 |
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Mortgage Glossary |
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Use this glossary to look up definitions of mortgage terms. The definitions given here explain how the terms are used in the field of real estate finance.
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Fannie Mae The Federal National Mortgage Association (FNMA), a private corporation supervised by HUD; one of the three major secondary market agencies, along with Freddie Mac and Ginnie Mae. |
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Farmers Home
Administration (FmH A federal agency within the Department of Agriculture, which makes loans in rural areas to people who are unable to obtain financing from private sources, and also insures loans made by private lenders. The loans may be used to purchase or develop farms, build or rehabilitate farm homes and other farm buildings, or develop rural housing for the elderly. |
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Federal Home Loan
Mortgage Corpo Also called "Freddie Mac", is a quasi-governmental agency that purchases conventional mortgage from insured depository institutions and HUD-approved mortgage bankers. |
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Federal Housing
Administration ( An agency within the Department of Housing and Urban Development that provides mortgage insurance to encourage lenders to make more affordable home loans. |
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Federal Reserve The government body that regulates commercial banks, and that implements monetary policy in an attempt to control the national economy. |
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FHA-Insured Loan A loan made by an institutional lender with mortgage insurance provided by the Federal Housing Administration, protecting the lender against losses due to borrower default. |
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FHLMC The Federal Home Loan Mortgage Corporation provides a secondary market for savings and loans by purchasing their conventional loans. Also known as "Freddie Mac". |
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Financial Statement A summary of facts showing the financial condition of an individual or a business, including a detailed list of assets and liabilities. Also called a balance sheet. |
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First Lien Position The position of lien priority held by a mortgage or deed of trust that has higher priority than any other mortgage or deed of trust against the property. |
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First Mortgage The mortgage (or deed of trust) against a property that has first lien position; the one with higher lien priority than any other mortgage against that property. |
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Fiscal Year Any twelve month period used as a business year for accounting, tax, and other financial purposes, as opposed to a calendar year. |
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Fixed Rate Mortgage A home loan with an interest rate that will remain the same rate for the life of the loan. |
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Foreclosure A legal process by which the lender or the seller forces a sale of a mortgaged property because the borrower has failed to meet the terms of the mortgage. |
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Fourplex Any building containing exactly four dwelling units. |
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Functional
Obsolescence Depreciation resulting from functional inadequacies, such as those caused by poor or outmoded design. |
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Funding Fee A charge, paid by a VA borrower at closing, which the lender submits to the VA. |
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