Glossary: F

The percentage interest rate that is shown on the actual loan note or document.

Economic indicator that measures the total volume of orders placed with U.S. factories. Also includes inventory and order backlog components, which can offer insight into inflation and growth in the manufacturing sector. Frequency: monthly. Source: Commerce Department.

A federal consumer protection regulation that controls the disclosure of credit information and establishes procedures for correcting mistakes in your credit file.

The amount that a property would command if it were currently available to rent or lease.

The highest price that a willing, but not compelled, buyer would pay, and the lowest price that a willing, but not compelled, seller would accept.

FNMA (Federal National Mortgage Association) One of the congressional chartered, publicly owned companies that is the largest source of home mortgage funds.

The front outside wall of a building.

Interest rate charged by banks, with excess reserves at a Federal Reserve district bank, to banks needing overnight loans to meet reserve requirements. The federal funds rate is the most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate, which are periodically changed by banks and by the Federal Reserve Board, respectively.

An area of the U.S. Department of Housing and Urban Development (HUD) that insures low down-payment mortgages granted by some lenders. The loan must meet the established guidelines of FHA in order to qualify for the insurance.

Policy committee in the Federal Reserve System that sets short-term monetary policy objectives for the Fed. The committee is made up of the seven governors of the Federal Reserve Board, plus five of the 12 presidents of the Federal Reserve Banks.

Absolute ownership of real property; the greatest possible interest a person can have in real estate.

An unconditional, unlimited estate of inheritance that represents the greatest possible interest in land that can be enjoyed.

A mortgage for which the Federal Housing Administration (FHA) and the originating lender share the risk of loss in the event of the borrower’s default.

A mortgage insured by the Federal Housing Administration (FHA). FHA loans are also known as government mortgages.

A scoring model developed by the Fair Isaac Corporation generally used by lenders. This scoring system is based completely on information available in credit reports.