Glossary of terms used on this site
There are 105 entries in this glossary.All
| Term | Definition |
|---|---|
| First-Time Homebuyer |
A buyer who has not had a mortgage interest deduction on their federal tax return for the past three years. |
| Fixed Rate Mortgage |
A loan that will require the borrower to pay the same interest rate for the entire term of the loan. |
| Fixer Upper |
A property requiring repair or remodeling to bring it to what is considered standard condition. |
| FNMA |
See FANNIE MAE. |
| Foreclosure |
The legal process in which mortgaged property is sold to pay a defaulting borrower's debt. |
| Freddie Mac (FHLMC) |
A counterpart to Fannie Mae as a major purchaser of residential mortgage loans in the secondary market. |
| Fully Indexed Rate |
The total interest charged to the borrower for an adjustable rate loan once the start rate ends. It includes the interest rate of the index and the margin. |
| Gift Letter |
A letter from one who is giving money to a buyer for part of the down payment. |
| Graduated Payment Mortgage (GPM) |
A mortgage loan that begins with a low monthly payment that gradually increases to an amount necessary to amortize the loan over the term. Its purpose is to help buyers who expect future income to increase |
| Hazard Insurance |
Lender required insurance that protects the property against loss due to fire or other natural disaster and usually covers the insured for liability. Also known as homeowner’s insurance. |