Foreclosure: an appropriate processes in which mortgaged home is offered to spend the borrowed funds of one’s defaulting borrower
Fixed-Rate Mortgage: a mortgage with repayments one to continue to be an identical on lifetime of mortgage just like the rate of interest or other terminology try repaired plus don’t transform.
Flood Insurance policies: insurance one handles people against loss regarding a flooding; in the event that a property is located in a flooding plain, the financial institution will require flooding insurance before approving that loan.
Forbearance: a lender will get choose to not simply take suit when an effective debtor are later in making a payment. Always this occurs when a borrower sets up plans you to definitely both sides concur will bring overdue mortgage payments state of the art.
Freddie Mac: Government Home loan Financial Firm (FHLM); a federally chartered organization you to definitely instructions residential mortgage loans, securitizes them, and you may sells these to investors; thus giving lenders with financing for brand new homeowners. Called a national Backed Enterprise (GSE).
Front Proportion: a percentage evaluating a beneficial borrower’s complete monthly pricing to acquire an excellent family (mortgage dominant and you will attention, insurance rates, and you may a residential property taxation) so you can month-to-month earnings ahead of write-offs.
G
GSE: acronym to have government paid companies: some financial characteristics firms formed of the Us Congress to attenuate rates of interest getting producers and property owners. These include Fannie mae and Freddie Mac computer.