Gnomenclature

FAFSA stands for “Free Application for Federal Student Aid.” It is an online form you can fill out to apply for loans, scholarships, grants, and other forms of educational financial assistance from the federal government. Many colleges and states also use the FAFSA to evaluate eligibility for their own student aid programs.

The Federal Deposit Insurance Corporation is a federal agency that protects investors against losses due to bank failures. Deposits in qualified accounts at FDIC-backed institutions are insured for up to $250,000 (or $500,000 for joint accounts) per depositor at each bank. Qualified accounts include savings, money market and certificate of deposit accounts. Other accounts, such as brokerage accounts, are not covered even if they are offered by an FDIC-participating institution.

The federal funds rate is an interest rate used for short-term lending and borrowing among banks. The Federal Reserve sets targets for the Fed funds rate which it maintains by buying and selling securities. This influences economic activity by affecting the cost of borrowing money.

Federal Reserve Board is the central bank of the United States. It performs many functions to provide stability to the financial system. These include setting interest rates and providing liquidity to financial institutions and markets.

Federal student loans are educational loans subsidized by the U.S. government. They may be serviced by private companies, but their government backing typically makes them easier to get and more affordable than private loans. Federal student loans also have more flexible repayment terms.

The FICO Score is the most widely used credit scoring model. A credit score is a three-digit number which is based on your history of using credit. FICO scores range from 300 to 850, with higher scores being better. Lenders review credit scores as part of their evaluation of how risky it would be to extend credit to you. The higher your credit score, the better chance you have of getting credit and the lower the interest rate you are likely to pay.

Fixed-rate mortgage is a home loan for which the interest rate stays constant throughout the repayment period. As a result, fixed-rate mortgages typically have the same monthly payment from start to finish.

Flood insurance provides homeowners with protection against flooding. However, flood damage is not covered by most homeowners’ insurance policies so this coverage typically must be obtained separately.

Foreclosure is a legal process through which a lender claims a property which has been held as collateral for a mortgage loan. This may be triggered by persistent failure on the part of the borrower to meet the terms of the loan.