REAL ESTATE 101
Real Estate Glossary - F
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Fair market value
The highest price that a buyer, willing but not compelled to buy, would pay, and the lowest a seller, willing but not compelled to sell, would accept.
Fannie Mae (Federal National Mortgage Association)
Fannie Mae's operates under a congressional charter that directs it to channel its efforts into increasing the availability and affordability of homeownership for low, moderate, and middle-income Americans. Fannie Mae receives no government funding or backing, and is one of the nation's largest taxpayers as well as one of the most consistently profitable corporations in America. Fannie Mae establishes strict guidelines for mortgage loans it is willing to purchase. As the largest buyer of mortgage loans in the US, these guidelines have become the industry standard for the majority of home loans. Any loan that meets these Fannie Mae guidelines is called a "conforming loan".
Fiduciary
The relationship of trust, honesty and confidence between agent and principal; the faithful relationship owed by an agent to the principal.
Fixed rate mortgage
A mortgage with an interest rate and monthly payment that doesn't vary for the term of the loan.
Fixed-Rate Loans
Fixed-rate loans have interest rates that do not change over the life of the loan. As a result, monthly payments for principal and interest are also fixed for the life of the loan. Fixed-rate loans typically have 15-year or 30-year terms. With a fixed-rate loan, you will have predictable monthly mortgage payments for as long as you have the loan.
Foreclosure
A legal procedure whereby the lender obtains ownership of the property following default by the borrower.
Forfeiture
The loss of property or a privilege due to breaking a law.
Freddie Mac
The common name for the Federal Home Loan Mortgage Corporation (FHLMC), a congressionally chartered institution that buys mortgages from lenders and resells them as securities on the secondary mortgage market.
|
