F

FEASIBILITY ANALYSIS
An analysis to determine the feasibility of a project. Details of construction costs, projected income from the project plus location and economic factors affecting the project will be required. Similar to a feasibility study by a developer conducted to decide whether to proceed with plans and required by the lender to decide whether to provide funds.

FEE SIMPLE
The highest estate or absolute right in real property. In common law, the most common way real estate is owned. The most complete ownership interest one can have in real property.

FINAL ORDER OF CLOSURE
Judgment taken against a mortgagor, extinguishing the equity of redemption.

FINANCIAL INSTITUTIONS
Banks, credit unions, insurance and trust companies

FINANCING STATEMENT
A statement filed by a creditor in a public records office identifying the parties, giving their addresses, and describing the collateral.

FIRST MORTGAGE
The mortgage agreement which has first claim on the property in the event of default.

FIRST MORTGAGE BOND
Bonds issued by a corporation secured upon the property and earnings of the issuing corporation.

FIXED RATE MORTGAGE
This is the usual form of mortgage where the interest rate remains the same during the entire life of the loan.

FIXTURES
Permanent improvements to property that may not be removed at the expiration of the term of lease or tenure.

FLAT PAYMENT
An all inclusive monthly payment that is calculated to include principal interest and taxes. Under this system there is no specific breakdown as to the amounts of the principal, interest and taxes.

FLOATING RATE OF INTEREST
Rate of interest which fluctuates according to prime lending rates, e.g. 2% above prime rate usually chargeable on short term loans such as construction loans.

FLOOR TO CEILING LOAN
A permanent loan or advance made in two stages, (a) on completion of construction according to agreed upon terms and conditions, and (b) the balance advanced upon occupancy or upon cash flow requirements.

FORECLOSURE
Remedial court action taken by a mortgagee when default occurs on a mortgage, to cause forfeiture of the equity of redemption of the mortgagor.

FORWARD COMMITMENT
Lender’s commitment to make or assume a future loan.

FREEHOLD
The ownership of a tract of land on which the building(s) are located. The oldest and most common type of ownership of real estate.

FULLY AMORTIZED LOAN
A mortgage loan wherein the stipulated payments repay the loan in full by its maturity date.

FURTHER CHARGE
A second or subsequent loan of money to a mortgagor by a mortgagee, either on the same or on an additional security.