Current Mortgage Rates: Richmond, VA
3.000% (3.001% APR) 30yrs
2.500% (2.617% APR) 15yrs
as of 06/18/21
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Glossary of Mortgage Terms

Search for glossary terms (regular expression allowed)
Term Main definition
Fallout
Loan applications that are withdrawn by borrowers, sometimes because they have found a better deal.
FAMEMP
A fully-amortizing motgage with equal monthly payments.
Fannie Mae
One of two Federal agencies that purchase home loans from lenders. (The other is Freddie Mac). Both agencies finance their purchases primarily by packaging mortgages into pools, then issuing securities against the pools. The securities are guaranteed by the agencies. They also raise funds by selling notes and other liabilities.
Fees
The sum of all upfront cash payments required by the lender as part of the charge for the loan. Origination fees and points are expressed as a percent of the loan. Junk fees are expressed in dollars.
FHA mortgage
A mortgage on which the lender is insured against loss by the Federal Housing Administration, with the borrower paying the mortgage insurance premium. The major advantage of an FHA mortgage is that the required down payment is very low, but the maximum loan amount is also low.
FICO Score
See Credit Score.
Final prices
The prices paid by the borrower, as opposed to posted prices.
Financing points
Including points in the loan amount.
First mortgage
A mortgage that has a first-priority claim against the property in the event the borrower defaults on the loan. For example, a borrower defaults on a loan secured by a property worth $100,000 net of sale costs. The property has a first mortgage with a balance of $90,000 and a second mortgage with a balance of $15,000. The first mortgage lender can collect $90,000 plus any unpaid interest and foreclosure costs. The second mortgage lender can collect only what is left of the $100,000.
Fixed rate mortgage (FRM)
A mortgage on which the interest rate and monthly mortgage payment remain unchanged throughout the term of the mortgage.
Flexible payment ARM
Same as Option ARM.
Float
Allowing the rate and points to vary with changes in market conditions. The borrower may elect to lock the rate and points at any time but must do so a few days before the closing. Allowing the rate to float exposes the borrower to market risk, and also to the risk of being taken advantage of by the loan provider.
Float-down
A rate lock, plus an option to reduce the rate if market interest rates decline during the lock period. Also called a cap. A float-down costs the borrower more than a lock because it is more costly to the lender. Float-downs vary widely in terms of how often the borrower can exercise (usually only once), and exactly when the borrower can exercise.
Forbearance agreement
An agreement by the lender not to exercise the legal right to foreclose in exchange for an agreement by the borrower to a payment plan that will cure the borrower's delinquency
Foreclosure
The legal process by which a lender acquires possession of the property securing a mortgage loan when the borrower defaults.

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