Fair
market value The price at which property is transferred
between a willing buyer and a willing seller, each of whom
has a reasonable knowledge of all pertinent facts and neither
of whom is under any compulsion to buy or sell.
Fee simple
An estate under which the owner is entitled to unrestricted
powers to dispose of the property and that can be left by
will or inherited; commonly, the greatest interest a person
can have in real estate.
FHA loan
A loan that is underwritten to the standards of the Federal
Housing Administration, which grants approval of the loan
and insures the lender against financial loss.
Fixed rate
mortgage A mortgage in which the interest rate and
payments remain the same for the life of the loan.
Floor
The lowest interest rate that can be charged on an Adjustable
Rate Mortgage loan. Usually the floor and the initial interest
rate are the same.
FNMA (Fannie
Mae) A private corporation dealing in the purchase
of first or second mortgages at discounts.
Forbearance
The act of refraining from taking legal action despite
the fact that a mortgage is in arrears.
Foreclosure
A legal process by which the lender acquires title to a property
in order to sell it to recoup a defaulted debt.
Freehold
estate An estate in real estate that could last forever.
Funding
The disbursement of funds to complete a transaction.
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