A loan application that is withdrawn by a borrower that is sometimes predicated by having found a better deal.
See Federal National Mortgage Association
Federal Home Loan Mortgage Corporation (FHLMC) also called “Freddie Mac”
A government sponsored entity that purchases conventional mortgage from insured depository institutions and HUD-approved mortgage bankers.
Federal Housing Administration (FHA)
A division of the Department of Housing and Urban Development. Its main activity is the insuring of residential mortgage loans made by private lenders. FHA also sets standards for underwriting mortgages.
Federal National Mortgage Association (FNMA) also know as “Fannie Mae”
A government sponsored entity that purchases and sells conventional residential mortgages as well as those insured by FHA or guaranteed by VA.
The total sum of all upfront cash payments required by the lender as part of the charge for the loan. Origination fees and points are conveyed as a percent of the loan. Lender fees are conveyed in dollars.
A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderately priced homes almost anywhere in the country.
FHA Mortgage Insurance
Requires a fee (up to 2.25 percent of the loan amount) paid at closing to insure the loan with FHA. In addition, FHA mortgage insurance requires an annual fee of up to 0.5 percent of the current loan amount, paid in monthly installments. The lower the down payment, the more years the fee must be paid.
The Federal Home Loan Mortgage Corporation provides a secondary market for savings and loans by purchasing their conventional loans. Also known as “Freddie Mac.”
The primary lien against a property.
Fixed Rate Mortgage
On this type of mortgage the mortgage interest rate for the original borrower remains the same throughout the term of the mortgage.
A mortgage having a term of 40 years.
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.
The Federal National Mortgage Association is a secondary mortgage institution. FNMA buys VA, FHA, and conventional mortgages from primary lenders. Also known as “Fannie Mae.”
See Federal Home Loan Mortgage Corporation
Mortgage broker income paid by the borrower, as distinguished from the fee paid by the lender, which is “back-end”.