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GLOSSARY
Fixed rate mortgage
Mortgage that has a fixed rate of interest till the end of the term of the loan.
Fixed-income security
Fixed-income security is an investment that pays a stated yield or makes regular, periodic payments over time. Bonds (either corporate or government) are a common fixed-income security.
Fixed-period ARM
A fixed-period ARM is a type of mortgage loan that starts with a fixed rate of interest, and then later converts to an adjustable-rate mortgage. The initial fixed period can vary from one to 10 years. Fixed-period ARMs are also called hybrid ARMs.
Fixed-rate
Fixed-rate describes a loan where the interest rate remains the same for the duration of the facility. Fixed-rate loans are considered more conservative (for borrowers) than adjustable-rate loans, where the rate changes according to economic conditions.
Fixed-rate mortgage
A fixed-rate mortgage, or FRM, is a loan secured by real estate property that accrues interest at the same rate throughout the life of the debt.
Fixed-rate option
A fixed-rate option is a feature included in some adjustable-rate home equity loans or lines of credit. The option allows the borrower to convert some or all of the outstanding debt to a fixed-rate loan. This option is only available under certain conditions, and these would be specified in the loan agreement. Debt having this option would be priced higher than the same debt facility that doesn't have the fixed-rate option.
Fixed-time
Fixed-time is an option for timeshare ownership describing the right to use the property during a specified week of the year.
Fixed-unit
Fixed-unit is a timeshare ownership option describing the right to use the same unit within a resort for the allotted number of weeks per year.
Fixed-week
Fixed-week is an option for timeshare ownership describing the right to use the property during a specified week of the year. Usually the weeks of the year are numbered, 1 through 52.
Fixer-upper
A house or property that requires a lot of repair or updating. First time home buyers often save money on a fixer upper but can regain their investment when the house sells for much more than the purchase price.
Fixture
Personal property that becomes real property when it is attached to a building. These properties may include ceiling fans, chandeliers, built-in bookcases, and drapery rods. May be classified as amenities.
Flat benefit formula
The flat benefit formula is a means of determining how much an employer contributes to an employee's defined benefit plan, based on the amount of time the employee has worked for the employer.
Flat fee
A fixed charge that a broker may request in lieu of a commission.
Flexible fund
A flexible fund is a mutual fund that has no specific investment focus other than maximizing return. Most mutual funds operate under a stated strategy, such as focusing on a particular industry or company size. Flexible funds reserve the right to make any type of investment in order to produce the best results for their investors.
Flexible Payment
A type of mortgage with a flexible payment is an interest only home loan. In this arrangement, the borrower is only required to pay the interest each month; any additional payment toward the principal balance is up to the borrower. Borrowers chose this type of mortgage to free up monthly expense to allow budget allowances for retirement, home improvements, or education.