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Laura Chang
MBA, REALTOR®
MBA, REALTOR®
Fair Credit Reporting Act (FCRA)
Congress passed this act to give consumers certain rights when dealing with consumer reporting agencies. Credit reporting agencies are required to provide accurate
credit histories to authorized businesses for use in evaluating applications for insurance, employment, credit or loans.
Fannie Mae
Fannie Mae is a private, shareholder-owned company that works to make sure mortgage money is available for people all across America. It does not lend money directly
to home buyers but it works with lenders. Fannie Mae stock (FNM) is actively traded on the New York Stock Exchange and other exchanges and is part of the Standard &
Poor's 500 Composite Stock Price Index.
Federal Housing Administration (FHA)
The FHA (Federal Housing Administration) provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA
insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over
34 million properties since its inception in 1934.
Fixed-Rate Mortgage
A mortgage on which the interest rate does not change for the entire term of the loan.
For Sale By Owner (FSBO)
An owner sells his or her own property without employing a real estate agent to avoid paying a sales commission.
Foreclosure
A legal procedure in which property securing a defaulted loan is sold by the lender in order to repay a borrower's loan. The amount paid by a buyer at the foreclosure may
not be enough to fully repay the loan and the borrower may continue to owe the lender the difference.
Freddie Mac
Freddie Mac is a stockholder-owned corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage
bankers, savings institutions and credit unions, can make available to homebuyers and multifamily investors. Freddie Mac conducts its business primarily by buying
mortgages from lenders, packaging the mortgages into securities and selling the securities (FRE) - guaranteed by Freddie Mac - to investors. Mortgage lenders use the
proceeds from selling loans to Freddie Mac to fund new mortgages, constantly replenishing the pool of funds available for lending to homebuyers and apartment owners.
Ginnie Mae
Ginnie Mae is a government agency within HUD created by Congress to ensure adequate funds exclusively for government loans insured by the Federal Housing
Administration (FHA) and guaranteed by the Department of Veterans Affairs (VA) and Veterans Administration.
Gross Annual Income
The total amount of income from all sources that a borrower receives per year before deductions.
Hazard Insurance
A form of insurance in which the insurance company protects the insured from specified losses such as windstorm or fire.
Home Inspection
An inspection of the current condition of a property. It is conducted by a third party who has the expertise and knows what to look for, including all major appliances and
structural elements. If an inspector finds something wrong, the buyer may request that the seller pay for the repairs.
Homeowners' Association
An organization of property owners that administers the rules and upholds the covenants of a subdivision, development or condominium complex.
Home Owner’s Warranty
An insurance policy that covers certain repairs of a newly purchased home for a certain period of time.
HUD
The Department of Housing and Urban Development Act of 1965 created HUD as a Cabinet-level agency of the U.S. government. HUD's mission is to increase
homeownership, support community development and increase access to affordable housing free from discrimination. To fulfill this mission, HUD will embrace high
standards of ethics, management and accountability and forge new partnerships - particularly with faith-based and community organizations - that leverage resources
and improve HUD's ability to be effective on the community level.
Impound Account
An account established by a lender to withhold a borrower’s property tax and insurance payments. Impound accounts are usually required on mortgages with down
payments of 10 percent or less.
Index
When used in a note or credit agreement, an index is the measurement used to decide how much the annual percentage rate (APR) will change at the beginning of each
adjustment period. Generally, the index plus margin equals the new rate that will be charged, subject to any caps. Different lenders use different index rates.
Interest
The fees charged for borrowing money.
Jumbo Loan
Also known as a non-conforming loan. The amount of the loan exceeds standards that would make it eligible for sale to Fannie Mae and Freddie Mac.
Congress passed this act to give consumers certain rights when dealing with consumer reporting agencies. Credit reporting agencies are required to provide accurate
credit histories to authorized businesses for use in evaluating applications for insurance, employment, credit or loans.
Fannie Mae
Fannie Mae is a private, shareholder-owned company that works to make sure mortgage money is available for people all across America. It does not lend money directly
to home buyers but it works with lenders. Fannie Mae stock (FNM) is actively traded on the New York Stock Exchange and other exchanges and is part of the Standard &
Poor's 500 Composite Stock Price Index.
Federal Housing Administration (FHA)
The FHA (Federal Housing Administration) provides mortgage insurance on loans made by FHA-approved lenders throughout the United States and its territories. FHA
insures mortgages on single family and multifamily homes including manufactured homes and hospitals. It is the largest insurer of mortgages in the world, insuring over
34 million properties since its inception in 1934.
Fixed-Rate Mortgage
A mortgage on which the interest rate does not change for the entire term of the loan.
For Sale By Owner (FSBO)
An owner sells his or her own property without employing a real estate agent to avoid paying a sales commission.
Foreclosure
A legal procedure in which property securing a defaulted loan is sold by the lender in order to repay a borrower's loan. The amount paid by a buyer at the foreclosure may
not be enough to fully repay the loan and the borrower may continue to owe the lender the difference.
Freddie Mac
Freddie Mac is a stockholder-owned corporation chartered by Congress to increase the supply of funds that mortgage lenders, such as commercial banks, mortgage
bankers, savings institutions and credit unions, can make available to homebuyers and multifamily investors. Freddie Mac conducts its business primarily by buying
mortgages from lenders, packaging the mortgages into securities and selling the securities (FRE) - guaranteed by Freddie Mac - to investors. Mortgage lenders use the
proceeds from selling loans to Freddie Mac to fund new mortgages, constantly replenishing the pool of funds available for lending to homebuyers and apartment owners.
Ginnie Mae
Ginnie Mae is a government agency within HUD created by Congress to ensure adequate funds exclusively for government loans insured by the Federal Housing
Administration (FHA) and guaranteed by the Department of Veterans Affairs (VA) and Veterans Administration.
Gross Annual Income
The total amount of income from all sources that a borrower receives per year before deductions.
Hazard Insurance
A form of insurance in which the insurance company protects the insured from specified losses such as windstorm or fire.
Home Inspection
An inspection of the current condition of a property. It is conducted by a third party who has the expertise and knows what to look for, including all major appliances and
structural elements. If an inspector finds something wrong, the buyer may request that the seller pay for the repairs.
Homeowners' Association
An organization of property owners that administers the rules and upholds the covenants of a subdivision, development or condominium complex.
Home Owner’s Warranty
An insurance policy that covers certain repairs of a newly purchased home for a certain period of time.
HUD
The Department of Housing and Urban Development Act of 1965 created HUD as a Cabinet-level agency of the U.S. government. HUD's mission is to increase
homeownership, support community development and increase access to affordable housing free from discrimination. To fulfill this mission, HUD will embrace high
standards of ethics, management and accountability and forge new partnerships - particularly with faith-based and community organizations - that leverage resources
and improve HUD's ability to be effective on the community level.
Impound Account
An account established by a lender to withhold a borrower’s property tax and insurance payments. Impound accounts are usually required on mortgages with down
payments of 10 percent or less.
Index
When used in a note or credit agreement, an index is the measurement used to decide how much the annual percentage rate (APR) will change at the beginning of each
adjustment period. Generally, the index plus margin equals the new rate that will be charged, subject to any caps. Different lenders use different index rates.
Interest
The fees charged for borrowing money.
Jumbo Loan
Also known as a non-conforming loan. The amount of the loan exceeds standards that would make it eligible for sale to Fannie Mae and Freddie Mac.
© 2007 Laura-Chang.com. All Rights Reserved.
Call me today for your
real estate needs!
949.394.4535
real estate needs!
949.394.4535