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Mortgage Glossary

 

Fannie Mae A congressionally chartered, shareholder-owned company that is the nation's largest supplier of home mortgage funds.
FHA Mortgage A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage.
FICO Score FICO® scores are the most widely used credit score in U.S. mortgage loan underwriting. This 3-digit number, ranging from 300 to 850, is calculated by a mathematical equation that evaluates many types of information that are on your credit report. Higher FICO® scores represent lower credit risks, which typically equate to better loan terms.
First Mortgage The primary lien against a property.
Fixed Installment The monthly payment due on a mortgage loan including payment of both principal and interest.
Fixed-Rate Mortgage (FRM) A mortgage interest that are fixed throughout the entire term of the loan.
Fully Amortized ARM An adjustable-rate mortgage (ARM) with a monthly payment that is sufficient to amortize the remaining balance, at the interest accrual rate, over the amortization term.
Fifteen-Year Fixed Rate Mortgage This loan is fully amortized over a 15-year period and features constant monthly payment. It offers all the advantages of the 30-year loan, plus a lower interest rate- and you'll own your home twice as fast. The disadvantage is that, with a 15-year loan, you commit to a higher monthly payment. Many borrowers opt for a 30-year fixed rate loan and voluntarily make larger payments that will pay off their loan in 15 years. This approach is often safer than committing to a higher monthly payment, since the difference in interest rates isn't that great.

 

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