F fee simple estate An unconditional, unlimited estate of inheritance that represents the greatest estate and most extensive interest in land that can be enjoyed. It is of perpetual duration. When the real estate is in a condominium project, the unit owner is the exclusive owner only of the air space within his or her portion of the building (the unit) and is an owner in common with respect to the land and other common portions of the property. FHA coinsured mortgage A mortgage (under FHA Section 244) for which the Federal Housing Administration (FHA) and the originating lender share the risk of loss in the event of the mortgagor's default. FHA mortgage A mortgage that is insured by the Federal Housing Administration (FHA). Also known as a government mortgage. finder's fee A fee or commission paid to a mortgage broker for finding a mortgage loan for a prospective borrower. firm commitment A lender’s agreement to make a loan to a specific borrower on a specific property. first mortgage A mortgage that is the primary lien against a property. fixed installment The monthly payment due on a mortgage loan. The fixed installment includes payment of both principal and interest. fixed-rate mortgage (FRM) A mortgage in which the interest rate does not change during the entire term of the loan. fixture Personal property that becomes real property when attached in a permanent manner to real estate. flood insurance Insurance that compensates for physical property damage resulting from flooding. It is required for properties located in federally designated flood areas. foreclosure The legal process by which a borrower in default under a mortgage is deprived of his or her interest in the mortgaged property. This usually involves a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt. forfeiture The loss of money, property, rights or privileges due to a breach of legal obligation. 401(k)/403(b) An employer-sponsored investment plan that allows individuals to set aside tax-deferred income for retirement or emergency purposes. 401(k) plans are provided by employers that are private corporations. 403(b) plans are provided by employers that are not for profit organizations. 401(k)/403(b) loan Some administrators of 401(k)/403(b) plans allow for loans against the monies you have accumulated in these plans -- monies must be repaid to avoid serious penalty charges. 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.
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