The rights of an individual to use another property for a particular purpose (e.g., access to their own property).
A right due to an individual. The term, when used with VA insurance, refers to the loan amount that the VA will guarantee.
Equal Credit Opportunity Act (ECOA)
Federal law prohibiting lenders from discrimination in lending 1) by reason of race, color, religion, national origin, sex, marital status or age, 2) because any income is derived from public assistance, or 3) because the applicant has exercised any rights under the Consumer Protection Act.
The difference between the current market value of a property and the principal balance of all outstanding loans.
Federal Home Loan Mortgage Corporation
A private corporation authorized by Congress which sells participation certificates secured by conventional mortgage loans. Also known as Freddie Mac.
Federal National Mortgage Association
A private, for profit, corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA and guaranteed by the VA as well as conventional mortgages. Also known as Fannie Mae.
Having full title ownership of an estate.
A loan insured by the Federal Housing Administration open to all qualified home purchasers. While there are limits to the size of FHA loans, they are generous enough to handle moderately-priced homes.
FHA Mortgage Insurance
FHA requires a fee (up to 1.50 percent of the loan amount) paid at closing to insure the loan. In addition, FHA mortgage insurance requires a monthly installment of .50 percent of the loan amount. The lower the down payment, the more years the insurance must be paid.
The total dollar amount your loan will cost you. It includes all interest payments for the life of the loan, any interest paid at closing, your origination fee and any other charges paid to the lender and/or broker. Certain closing costs are not included in the finance charge calculation.
Fixed Rate Mortgage
A mortgage where the interest rate does not change for the life of the loan.
Between application and closing, a borrower may choose to "play the market" by electing to float the interest rate. Floating is essentially choosing not to lock the interest rate. Since it is the borrower's responsibility to lock his or her rate before closing, choosing to float is considered risky and may result in a higher interest rate.
A legal procedure in which real estate is sold by the lender to pay a defaulting borrower's debt.