MORTGAGE TERMS DICTIONARY
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Federal Home Loan Bank Board (FHLBB) |
| Provides financing to farmers. |
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Farmer's Home Administration (FmHA) |
| An agency, within the U.S. Department of Agriculture, that administers assistance programs for purchasers of homes and farms in small towns and rural areas. |
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| Federal Reserve System |
| The central federal banking system that regulates and provides services to member commercial banks. Also has the responsibility for conducting federal monetary policy. |
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Fee Simple (Fee Absolute or Fee Simple Absolute) |
| Absolute ownership of real property; owner is entitled to the entire property with unconditional power of disposition during the owners life and upon his death the property descends to the owner's designated heirs. |
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Fidelity Bond |
An assurance, generally purchased by an employer, to cover employees who are entrusted with valuable property or funds.
Example : A landlord employs a clerk who collects rents. To safeguard these funds during the collection process, the landlord purchases a fidelity bond the clerk. |
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Fiduciary |
| A person in a position of trust or responsibility with specific duties to act in the best interest of a client. A real estate broker is a fiduciary for his/her clients. |
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Finance Charge |
| Interest charged by a lender. |
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First Mortgage |
| A mortgage that has priority as a lien over all other mortgages. In the case of a foreclosure the first mortgage will be satisfied before other mortgages. |
| | See Also : Second Mortgage |
Fixture |
Improvements or personal property attached to the land so as to become a part of the real estate. Fixtures are transferred to the buyer upon sale of the property. To determine whether an item is a fixture include :
- Intent (was it intended to be part of the property)
- How is it fixed ?
- Is the fixture essential to the property ?
- Relationship - was the fixture intended to be a part of the tenant's business ?
Example : John sells his house to Mary. John wants to take the chandelier because he states it is personal property. Mary wants the chandelier to stay because she believes it is a fixture. |
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Flood Insurance |
| An insurance policy that covers property damage due to natural flooding. Flood insurance may be required on properties in a flood zone. |
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Foreclosure |
| A legal process by which the lender forces a sale of a property because the borrower has not met the terms of the mortgage. |
| | See Also : Reposession |
Free and clear |
| A property that has no liens. |
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FSBO |
| For sale by owner. A property for sale that is not listed with a real estate broker. |
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Fully indexed rate |
| The fully indexed rate=value of the index + margin. See adjustable loans. |
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