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mortgage loan glossary F

Use the alphabet letters below to navigate to the words in this glossary.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

- F -

Fair Market Value

The valuation of a home based on recent sales of properties of similar size and quality in the neighborhood.
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Fannie Mae (Federal National Mortgage Association)

A government-chartered non-bank financial services company that is the nation's largest supplier of home mortgage funds. Rather than making home loans directly to consumers, Fannie Mae works with mortgage bankers, brokers and other primary mortgage market partners to help ensure they have funds to lend to home buyers at affordable rates. Fannie Mae funds its mortgage investments primarily by issuing debt securities in the domestic and international capital markets.
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Federal Housing Administration (FHA)

A federal agency that insures loans offered by certain lenders and issues loan guarantees to make more housing available. FHA was created by the Department of Housing and Urban Development (HUD). FHA sets standards for construction and underwriting, but it does not lend money or construct homes.
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FHA Mortgage

A loan with certain restrictions that is guaranteed by the Federal Housing Administration (FHA). FHA mortgages may be easier to qualify for since they require a low down payment (as low as 3.5%) and may offer lower interest rates. Under certain circumstances, the borrower is required to pay both an up-front and monthly premium for mortgage insurance. The up-front cost, usually 1% of the loan amount, can be rolled into the loan and paid off over time. To be eligible, the borrower must plan to live in the home that is purchased.
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Fixed Rate Mortgage (FRM)

With a fixed rate mortgage, you never worry about your interest rate going up and causing your mortgage payment to increase. That means you're able to budget better.

With Fixed Rate mortgage products you can choose from a variety of mortgage repayment terms and enjoy a set interest rate for the life of your mortgage.
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Foreclosure

The legal process by which a mortgaged property may be sold when a mortgage is in default because the borrower has not met the terms of the mortgage. There are many homeowner support programs that are offered to avoid foreclosure. If other arrangements cannot be made, the foreclosure usually results in a forced sale of the property at public auction with the proceeds of the sale being applied to the mortgage debt.
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Freddie Mac (Federal Home Loan Mortgage Corporation) (FHLMC)

A financial corporation chartered by the Federal Government to buy pools of mortgages from lenders, and sell securities backed by these mortgages. Freddie Mac conducts business in the U.S. secondary mortgage market and works with a national network of mortgage lending customers. It does not originate loans. Freddie Mac purchases home loans that lenders originate, puts these loans into mortgage securities that are sold in global capital markets, and recycles the proceeds back to lenders. This recycling is designed to ensure that lenders have mortgage money to lend.
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