Mortgage Terms

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The mortgage industry has many unique and confusing terms and acronyms. We hope these descriptions help you to better understand the lending process.

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There are 5 names in this directory beginning with the letter F.
FICO Score
FICO stands for Fair Issac Corp., a California-based company that created the first-ever credit score. This is the lending industry's preferred credit score. FICO scores run from 300 to 850.

Fixed-Rate Mortgage
Interest rates cannot fluctuate on a fixed-rate mortgage. The most common fixed-rate terms are 15 years and 30 years.

Float
Borrowers can either float or lock when it comes to an interest rate. Float is the default setting until a purchase agreement is in place.

Foreclosure
This basically means the lender takes back its house because you failed to keep up with mortgage payments. There are restrictions on foreclosures against active duty service members through the Servicemembers Civil Relief Act.

Funding Fee
A mandatory fee charged by the Department of Veterans Affairs to help cover the VA Loan program's costs. This funding fee can be financed as part of the home loan. It's important to note the money from the Funding Fee goes to VA. Lender do not keep anyof this fee. Borrowers with a service-connected disability are exempt from paying the Funding Fee.

Mortgage Calculator

Purchase price
Please enter here the amount you expect to pay for a home.
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Down payment
Down payment is cash that you pay upfront for your home.
20.0%
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Term in years
Number of years you have to pay.
years
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Interest rate (per year)
The percentage of interest that you will pay on your mortgage for a specific term.
%
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Property tax
Enter your property tax here if you know it.
per year
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Home insurance
Most lenders require home insurance. Enter its price here.
per year
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PMI
PMI is Private Mortgage Insurance which is usually required to pay if your Down payment less than 20%.
per month
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Principal & Interest
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Home insurance
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Property taxes
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PMI
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