You are now leaving the FirstLight Federal Credit Union website. The Credit Union is not responsible for the privacy practices or the content of other websites. In no event will the Credit Union be liable for problems arising from the use of the FLFCU website to link to other websites, including but not limited to computer viruses, loss of data, delay in operation, transactions conducted between the third party and the member, and transmission or loss of privacy.
Earnest Money: Funds that are included with an offer to show good faith in following through with the transaction.
Equity: The current market value of a home minus outstanding mortgage balance(s).
Escrow: The period between the date the purchase contract is signed and the date of the loan closing.
Escrow Account: A special account set up by the lender to collect and hold monthly payments towards annual property taxes and homeowners insurance. Also called “impound account.”
Fair Housing Act: A federal law that prohibits discrimination in housing and real estate transactions.
Fair Market value: The price a buyer will pay and a seller will accept for real property.
FHA Loan: A type of mortgage that is insured by the Federal Housing Administration, a department of the federal government.
FICO (Fair Isaac Corporation): A system of scoring credit reports and the company that developed the system.
Finance Charge: The total dollar amount charged to use credit, which includes interest and other costs.
First Mortgage: A home loan that has priority over the claims of subsequent lenders for the same property in the event of default.
Fixed Expense: An expense that does not change from month to month, such as loan payments or rent.
Fixed-Rate Mortgage: A loan on which the interest rate remains the same over the life of the loan.
Flexible Expense: Expenses that change from month to month, like the cost of groceries, entertainment and personal items.
Flood Insurance: A policy required by a lender if a buyer’s house is located in a flood zone.
Forbearance: An agreement by the lender to allow a delinquent borrower to skip one or more payments completely and make them up later through a payment plan.
Foreclosure: The legal process used to force the payment of debt secured by collateral whereby the property is sold to satisfy the debt.
Gross Income: Money earned before taxes and other deductions.