|
|
Houston Mortgage > Glossary >
Real Estate > F 1-10
|
|
Fees
This is money you pay or is charged to you up front to get a mortgage loan. You may pay fees in cash or finance them (or a portion of them) as part of the loan. If you finance fees, your loan balance will be higher and your equity will be lower. The fees appear on the Good Faith Estimate and HUD-1 Settlement Statement. Many of these fees are negotiable or can be reduced if you shop around.
FICO
Credit scores calculated by Fair Isaac Company are often referred to as FICO Normally an average of credit scores taken by 3 national credit bureaus.
Finance Charge
The finance charge is a disclosure that appears on the Truth in Lending Act Disclosure Statement. It is intended to show the cost of your loan as a dollar amount. It includes (1) interest that will be charged over the life of the loan and (2) some up front fees (prepaid finance charges). Prepaid finance charges include such items as mortgage broker fees; lender fees; points; and some closing agent fees. Any closing fees that are unreasonably high should also be included. You may also be required to pay other fees that will not be included in the finance charge.
Finance Companies
These are companies that make loans which are generally at higher rates than are available from banks or credit unions.
Fixed Rate Loan
A loan where the interest rate does not change during the term of the loan.
Flood Certification Fee
A fee charged to determine if the property lies in a flood zone and whether flood insurance is required.
Foreclosure
The legal procedure by which a lender holding a mortgage on your house forces a sale of your house to obtain repayment of your loan. Foreclosure proceedings are typically started by a lender when you do not pay your loan on time. It might also be started if you fail to pay property taxes or insurance or keep other promises.
Fully Amortizing
This describes a loan where the balance owed at the scheduled end of the loan is zero if all regular monthly payments are made as scheduled.
|
|
|
Houston Home Mortgage