Fair Market Value
The price at which property is transferred between a willing buyer and a willing seller, each of whom has reasonable knowledge of all pertinent facts and neither being under any compulsion to buy or sell.
Federal Home Loan Mortgage Corporation (FHLMC/FREDDIE MAC)
A private corporation authorized by Congress. It sells participation sales certificates secured by pools of conventional mortgage loans, their prinipcal and interest guaranteed by the federal government through the FHLMC. It also sells Government National Mortgage Association bonds to raise funds to finance the purpose of mortgages.
Federal Housing Administration FHA
A division of the Department of Housing and Urban Development. Its main activity is the insuring or residential mortgage loans made by private lenders. It sets standards for construction and underwriting. FHA does not lend money, nor plan, or construct housing.
Federal National Mortgage Association (FNMA/FANNIE MAE)
A tax paying corporation created by Congress to support the secondary mortgage market. It purchases and sells residential mortgages insured by FHA or guaranteed by FA, as well as conventional home mortgages.
An individual or institution responsible for acting in the best interests of another party. A fiduciary is bound by law and duty to put aside personal interests and act in good faith when making decisions for the benefit of another.
A real estate loan that creates a primary claim against real property.
Debt obligations issued by corporations, governments, or government agencies which pay a fixed rate of interest over a defined time period. Bonds and certain mortgage-backed securities are the most common examples of fixed-income investments.
Fixed Rate Mortgage
A mortgage having a rate of interest which remains the same for the life of the mortgage.
Insurance indemnifying against loss by flood damage. Required by lenders (usually banks) in areas designated (federally) as potential flood areas. The insurance is private but federally subsidized.
The layout of a building or portion of a building (apartment, office, etc.) showing the size of the rooms and the purpose of each (bath, bedroom, etc.).
A proceeding in or out of court, to extinguish all right, title and interest, of the owner(s) of property in order to sell the property to satisfy a lien against it.