FULL DISCLOSURE >> In real estate, revealing all the known facts that may affect the decision of a buyer or tenant.

FULLY INDEXED RATE >> The fully indexed rate is equal to the rate index plus the loan?s margin and is used with adjustable-rate mortgages. Example: If LIBOR is 6.50% and the margin on the loan is 4.00%, the fully indexed rate is 10.50%.

FUNCTIONAL OBSOLESCENCE >> Anything about the design or construction of a property that negatively affects its value. An example of this would be a property with 5 bedrooms and only 1 bathroom.

FUNDING >> The disbursement of loan funds, either by check or by wire transfer to the title company.

GARNISHMENT >> A legal proceeding under which a person?s money is in control of another and is taken for payment of a debt. The amount that may be taken is set by statute and, in most states, a judgment is necessary before garnishment.

GIFT LETTER >> A letter to the lender from the donor stating a gift of money has been made to the buyer in order to purchase specific property. The relationship of the donor and donee is stated, as well as the amount of the gift.

GRACE PERIOD >> A period of time past the due date for a payment during which a payment may be made and not considered delinquent and no late penalty will be charged.