Fixed Rate Mortgage Loans

A fixed rate mortgage has the same interest rate and monthly payment throughout the term of the mortgage. The payment is calculated to pay off the mortgage balance at the end of the term.

Fixed Rate versus Adjustable Rate

A fixed rate mortgage has the same payment for the entire term of the loan. An adjustable rate mortgage (ARM) has a rate that can change, causing monthly payments to increase or decrease.

FNMA (Fannie Mae)

The Federal National Mortgage Association – A federally chartered and privately owned corporation, organized and existing under the Federal National Mortgage Association Charter Act or any successor thereto.

Full Income Verification

Documented income that is verified by the underwriter to qualify for a loan. Documented income is the actual income from a wage earner providing current pay stubs and W-2’s for the last two years, self employed individuals providing the last two year’s tax returns with business schedules, and fixed income such as retirement, pension, social security, and permanent...

Fully Indexed Rate

The interest rate used to accrue interest on the Negative Amortization Mortgage after the initial fixed period has ended.

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