Financial Terms Glossary...

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
 

F

 

Finance Charge
The cost of credit, including interest paid by a member for a consumer loan. Under the Truth in Lending Act, the finance charge must be disclosed to the member on closed-end loans, along with the term of the loan or on request.

Fixed Rate (Loan)
Type of loan in which the interest rate does not fluctuate with general market conditions, including loans such as fixed rate mortgages and fixed rate business and consumer loans. Fixed rate loans usually have a higher original interest rate than adjustable rate loans because lenders are not protected against any rise in the cost of money.

 

Foreclosure
Process where a homeowner who has not made timely payments of principal and interest on a mortgage loan loses title to the home. The holder of the mortgage must follow legal procedures to seize the property, which is often sold to satisfy the mortgage claim(s).

Freddie Mac
Nickname for Federal Home Loan Mortgage Corporation (FHLMC).

 

G
 

Ginnie Mae
Nickname for the Government National Mortgage Association and the securities guaranteed by that agency.

Grace Period
Segment of time in which no interest is charged.

 

H

 

Home Equity Loan
Borrowing funds based on the the available equity of a house. Home equity can be used as collateral for loans, including a car, college, bill consolidation, and home repair or improvement loans.

Home Improvement Loan (HIL)
Funds borrowed to improve the appearance, comfort or condition of a home. Usually an home equity secured loan.

Home Equity Loan
Borrowing funds based on the the available equity of a house. Home equity can be used as collateral for loans, including a car, college, bill consolidation, and home repair or improvement loans.

Home Improvement Loan (HIL)
Funds borrowed to improve the appearance, comfort or condition of a home. Usually an home equity secured loan.