Mortgage Terms to Know
Here's a handy guide for you.
Mortgage terms can be confusing? Terms such as Fixed Rate and Adjustable Rate seem to have opposite meanings? This glossary explains mortgage terms in an easy-to-understand way.
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Home Equity Loan
A home equity loan (sometimes called a HEL) allows you to borrow money using the equity in your home as collateral. Equity is the amount … Read more
Freddie Mac
The Federal Home Loan Mortgage Corporation (Freddie Mac) is a private corporation founded by Congress. Its mission is to promote stability and affordability in the … Read more
Foreclosure
Foreclosure is when the lender or servicer takes back property after the homeowner fails to make mortgage payments. In some states, the lender has to … Read more
Force-Placed Insurance
Your servicer may require force-placed insurance when you do not have your own insurance policy or if your own policy doesn’t meet your servicer’s requirements. … Read more
Forbearance
Forbearance is when your servicer allows you temporarily to pay your mortgage at a lower rate or temporarily to stop paying your mortgage. Your servicer … Read more
Government Recording Charges
Government recording charges are fees assessed by state and local government agencies for legally recording your deed, mortgage, and documents related to your home loan. … Read more
Deed-in-lieu of Foreclosure
A deed-in-lieu of foreclosure is an arrangement where you voluntarily turn over ownership of your home to the lender to avoid the foreclosure process. A … Read more
FHA Mortgage Limits
FHA mortgage limits are the dollar amount limits for qualifying mortgages that the FHA will insure as part of its single-family home mortgage program. These … Read more
FHA Funding Fee
The Federal Housing Administration (FHA) requires an FHA funding fee and a monthly insurance premium (MIP) for most of its single-family programs. This upfront mortgage … Read more
Earnest Money
Earnest money is a deposit a buyer pays to show good faith on a signed contract agreement to buy a home. The deposit is held … Read more
Down Payment Programs or Grants
A down payment grant or program typically refers to assistance provided by an organization such as a government or non-profit agency, to a homebuyer to … Read more
Demand Feature
The Closing Disclosure has a statement that reads “Your loan has a demand feature,” which is checked “yes” or “no.” A demand feature permits the lender to … Read more
Delinquent
Delinquency is another term for being late on your payments. Your loan can become delinquent when you miss a payment or don’t make full payment … Read more
Finance Charge
A finance charge is the total amount of interest and loan charges you would pay over the entire life of the mortgage loan. “Mortgage Key … Read more
Fixed-Rate Mortgage
A fixed-rate mortgage is a type of home loan for which the interest rate is set when you take out the loan and it will … Read more
First-Time Home Buyers (FTHB) Loan Programs
First-time home buyers (FTHB) may use a number of different types of loan programs to purchase their first home. Popular FTHB loans include programs offered … Read more
Fannie Mae
The Federal National Mortgage Association (Fannie Mae) purchases and guarantees mortgages from lending institutions in an effort to increase affordable lending. Fannie Mae is not … Read more