Fannie Mae: A security issued by the Federal National Mortgage Association and secured by a pool of federally insured and conventional mortgages.
Federal Housing Administration (FHA): The Federal Housing Administration, a division of the US Department of Housing and Urban Development (HUD), offers financing options to help buyers qualify for a mortgage loan.
final proposal to creditors: The last alternative before bankruptcy, this alternative seeks to find an agreement with creditors for repayment of debts.
fixed mortgage benefits: A fixed mortgage rate has a fixed interest rate for the entire term of the loan and, therefore, has the same payment from month to month. Predictable payments allow borrowers to budget their finances.
fixed-mortgage: A mortgage that has a fixed interest rate for the entire term of the loan and, therefore, has the same payment from month to month until the loan is paid in full.
fixed-rate mortgage: A loan with an unchangeable interest rate over its entire term.
Freddie Mac: A corporation created by Congress to support the secondary mortgage market; it purchases and sells residential mortgages insured by the Federal Home Administration or guaranteed by the Veterans Administration.
general warranty deed: A deed in which the seller guarantees that the property title is clear back to its origins and that should the title fail, the seller will compensate the buyer for losses. This should not take the place of Title Insurance. (See also Deed.)
grantee: The party in the deed who is the buyer or recipient.
grantor: The party in the deed who is the seller or giver.
hazard insurance: Protects against damage caused to property by fire, windstorm, and other common hazards
home equity line of credit (HELOC): A line of credit that is secured by a property allowing the mortgagor to access their property's equity.
home equity loan: A loan allowing the mortgagor to borrow against the equity in the property, possibly up to 100% of the equity in the property.
HUD: The US Department of Housing and Urban Development insures mortgage loans by lenders and sets minimum standards for such homes.
hybrid mortgage: A hybrid mortgage combines features of both fixed-rate and adjustable-rate mortgages.
interest: A charge paid for borrowing money. (See also Mortgage Note.)
interest rate vs. apr: An interest rate is simply the percentage of a loan amount that a person is charged per year to finance a loan. The Annual Percentage Rate (APR) starts with the interest rate and then adds in other costs, such as points and other fees, called "finance charges. APRs are typically higher than interest rates because all finance charges, not just interest, are used to calculate an APR.
interest-only mortgage: A loan in which the borrower pays only the interest on the capital for a set term. At the end of the term, the borrower may renew the interest-only mortgage, repay the capital or convert the loan to a principal-and-interest-payment loan.
involuntary bankruptcy: A condition when creditors may file a bankruptcy petition against a debtor in an effort to recoup a portion of what they are owed.
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