FHA Mortgage: A mortgage that is insured by the Federal Housing Administration. Also referred to as a "government" mortgage.

First mortgage: The first-priority claim against the property in the event the borrower defaults on the loan.

Fixed rate mortgage (FRM): A mortgage on which the interest rate is specified in the loan contract and remains unchanged throughout the term of the mortgage.

Float: An option which the borrower may exercise at the time of the application to allow the rate and points to vary with changes in market conditions, rather than to "lock in" those prevailing at that time. The borrower may elect to "lock" at any point but must do so a few days before the closing.

Foreclosure: The legal process by which a mortgaged property may be sold when a mortgage is in default.