Mortgage Application Online

Mortgage Application Glossary

A-E F-J K-O P-T U-Z

F-J

Fannie Mae – Federal National Mortgage Association. - FNMA

FHA – Federal Housing Administration encourages lenders to grant loans by providing them mortgage insurance to cover their losses when a borrower defaults.

Fixed-Rate Mortgage: A mortgage plan that requires the borrower to make the same payment amount throughout the entire loan.

Foreclosure – A legal process that forces the sale of mortgaged property to cover the loan of the defaulting borrower.

Freddie Mac – Federal Home Loan Mortgage Corporation. - FHLM

Ginnie Mae – Government National Mortgage Association – GNMA

Good Faith Estimate – A written approximation of all closing fees; it is given to a borrower within three days of submitting a loan application.

HELP – Homebuyer Education Learning Program that counsels people on budgeting, home searching, applying for a loan, and most importantly reduction of initial FHA mortgage insurance premium from 2.25% to 1.75% of a home’s selling price.

HELOC – Home Equity Line of Credit; these loans are unique in the sense that they grant a borrower up to a certain dollar amount. The dollar amount can vary as needed.

Index – A published interest rate used by lenders to modify the interest they charge on an adjustable rate mortgage.

Inflation - An increase in price over an extended period of time. Inflation can affect mortgage prices.

Interest – An added fee for the use of money.

Interest Rate – The amount of interest charged on a loan payment.

Jumbo Mortgage – A mortgage that does not meet the conventional loan limit by purchasers Fannie Mae and Freddie Mac. The current limit is $359,650; loans that exceed this amount are picked up investors who offer increased interest rates.