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Glossary

Estate

The total of property, possessions, and debt owned at the time of death.

Estimated Gross Costs of Buying

The total amount of principal and interest payments over the number of years that you plan to own your home.

Estimated Increase in Equity

A property's estimated increase in value, determined by applying an estimated rate of appreciation for a specific number of years.

Estimated Net Costs of Buying

The estimated gross costs of buying a home minus estimated tax savings and estimated increase in equity.

Estimated Tax Savings

The estimated amount of property tax and loan interest saved by renting instead of buying a home.

Estimated Total Costs of Renting

The total cost of rental payments for the same number of years you plan to own a home, taking into account yearly rental increases.

Estimated Total Savings

The estimated net cost of renting compared to the lower net cost of buying.

Fair Credit Reporting Act

A federal law that, among other things, gives you the right to see your credit reports from credit reporting agencies, and allows you to examine and correct information.

Fair Housing Act

A Federal law that prohibits discrimination in the sale, rental, and financing of housing on the basis of race, color, national origin, religion, sex, family status, or disability.

Fair Market Value

The price that a willing buyer and seller agree upon in the open market when given comprehensive information about a home's worth.

Fannie Mae

The Federal National Mortgage Association (FNMA) — a privately-held corporation created by Congress to help make mortgages more available and more affordable. Fannie Mae purchases and sells mortgages to and from lenders on the secondary mortgage market, and is the nation's largest source of home mortgage funding.

Federal Housing Administration (FHA)

U.S. agency that sets standards for underwriting mortgages and insures residential mortgage loans from private lenders. A division of the Department of Housing and Urban Development (HUD).

Federal Housing Administration (FHA) Mortgage

An FHA-insured and guaranteed mortgage loan designed to make purchasing a home more affordable, especially for the first-time homebuyer. FHA loans feature lower down payments and higher qualifying ratios than most conventional mortgages. There are some limits to the amount of money that can be borrowed.

First Mortgage

A mortgage that is the primary lien on a property, and is the first to be paid.

Fixed Interest Rate

An interest rate that does not change for the entire term of the loan.