Understand the most important lending and mortgage terms. Mortgages can be confusing for the first time home buyer, so let us help explain. Below you'll find explanations for most of the mortgage industry terms.
What is Fair Housing Act (FHAct)?
Prohibits discrimination in real estate transactions because of race, color, religion, sex, handicap, familial status (families with children), or national origin. It applies to mortgage lending as…
What is Federal Housing Administration (FHA)?
A government agency, division of the Department of Housing and Urban Development, that insures residential mortgage loans made by private lenders and sets standards for underwriting mortgage…
What is First mortgage?
A mortgage that is in first lien position, taking priority over all other liens. In the case of foreclosure, the first mortgage will be repaid before any other…
What is Floor (Interest – ARM)?
A pre-determined amount that establishes the minimum interest rate life of a loan. This can be expressed as a percentage below the start rate, as a rate of interest independent of the start rate, or,…
What is Foreign National borrower?
A foreign national borrower is a person who is not a citizen of the host country in which he or she is residing or temporarily sojourning.…
What is Foreign National Mortgage?
Foreign National Mortgage is a mortgage provided to an individual who is not a citizen of the United States of America. Certain terms and conditions must be met to qualify for this type of mortgage.…
What is Freddie Mac?
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in the Tyson's Corner CDP in unincorporated Fairfax County,…
What is 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…
Mortgage Glossary
