Mortgage Glossary

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The front outside wall of a building.
Face Interest Rate
The percentage interest rate that is shown on the actual loan note or document.
Factory Orders
Economic indicator that measures the total volume of orders placed with U.S. factories. Also includes inventory and order backlog components, which can offer insight into inflation and growth in the manufacturing sector. Frequency: monthly. Source: Commerce Department.
Fair Credit Reporting Act
Fair Market Rent
The amount that a property would command if it were currently available to rent or lease.
Fair Market Value
Fannie Mae
Fannie Mae's Community Home Buyer's Program
FDIC insured
E-LOAN is a subsidiary of Banco Popular North America (BPNA). E-LOAN and BPNA combine account balances for insurance purposes. The Federal Deposit Insurance Corporation (FDIC) insures the total balances up to the maximum allowed by law.
Federal Funds Rate
Federal Housing Administration  (FHA)
Federal Open Market Committee  (FOMC)
Policy committee in the Federal Reserve System that sets short-term monetary policy objectives for the Fed. The committee is made up of the seven governors of the Federal Reserve Board, plus five of the 12 presidents of the Federal Reserve Banks.
Fee Simple
The greatest possible interest a person can have in real estate.
Fee Simple Estate
An unconditional, unlimited estate of inheritance that represents the greatest possible interest in land that can be enjoyed.
FHA Co-insured Mortgage
FHA mortgage
Finance Charge
The total dollar amount credit will cost.
Finder's Fee
Firm Commitment
A lending institution's agreement to give a loan to a specific borrower on a specific property.
First Adjustment
First Mortgage
A mortgage that is the first loan recorded in the public record and generally the primary loan against a property.
Fixed Installment
The monthly payment due on a mortgage loan which includes both principal and interest.
Fixed Second Mortgage
See home equity loan.
Fixed-Rate Mortgage  (FRM)
Personal property or improvements that become real property when attached to the land or building in a permanent manner.
Float Down Option
Flood Certification
An inspection to determine if a property is located in an area prone to flooding also known as a flood plain. The federal government determines whether an area is in a flood plain. Lenders generally rely on the flood certification to determine if flood insurance will be required in order to obtain a mortgage. For our comparison purposes, the cost of the flood certification is considered to be a third party fee, though you may find that all lenders do not pass this fee on to the borrower.
Flood Insurance
The loss of money, or anything else of value, due to a breach of legal obligation or contract.
Freddie Mac
FHLMC (Federal Home Loan Mortgage Corporation) One of the congressionally chartered, publicly owned companies that is the largest source of home mortgage funds.
Fully Amortized ARM