The mortgage industry has many unique and confusing terms and acronyms. We hope these descriptions help you to better understand the lending process.
Team Souther Glossary
There are 5 names in this directory beginning with the letter F.
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.
Interest rates cannot fluctuate on a fixed-rate mortgage. The most common fixed-rate terms are 15 years and 30 years.
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.
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.
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.