EXHIBIT 1.4

                       FIRST HORIZON ASSET SECURITIES INC.

                       MORTGAGE PASS-THROUGH CERTIFICATES
                                SERIES 2005-AA10

                                 TERMS AGREEMENT
                           (to Underwriting Agreement,
                            dated September 26, 2005,
                    between the Company and the Underwriter)


First Horizon Asset Securities Inc.                           New York, New York
4000 Horizon Way                                                October 24, 2005
Irving, Texas 75063

      Goldman,  Sachs & Co. (the "Underwriter") agrees, subject to the terms and
provisions herein and of the captioned Underwriting Agreement (the "Underwriting
Agreement"),  to purchase  such Classes of First  Horizon  Alternative  Mortgage
Securities Trust, Series 2005-AA10 Certificates specified in Section 2(a) hereof
(the  "Offered   Certificates").   This  letter  supplements  and  modifies  the
Underwriting  Agreement  solely as it  relates to the  purchase  and sale of the
Offered  Certificates  described below.  The Series  2005-AA10  Certificates are
registered with the Securities and Exchange  Commission by means of an effective
Registration Statement (No. 333-125158).  Capitalized terms used and not defined
herein have the meanings given them in the Underwriting Agreement.

      Section 1. The Mortgage Pools:  The Series  2005-AA10  Certificates  shall
evidence the entire  beneficial  ownership  interest in two pools (the "Mortgage
Pools") of primarily  30-year  adjustable rate,  first lien,  fully  amortizing,
one-to-four family residential  mortgage loans (the "Mortgage Loans") having the
following characteristics as of October 1, 2005 (the "Cut-off Date"):

            (a) Aggregate Principal Amount of the Mortgage Pools:  Approximately
      $315,016,725  aggregate  principal balance as of the Cut-off Date, subject
      to an upward or  downward  variance  of up to 5%,  the  precise  aggregate
      principal balance to be determined by the Company.

            (b) Original Term to Maturity: The original term to maturity of each
      Mortgage Loan included in Pool I and Pool II shall be 360 months.

      Section 2. The Certificates:  The Offered  Certificates shall be issued as
follows:

            (a)  Classes:  The  Offered  Certificates  shall be issued  with the
      following  Class  designations,  interest  rates and  principal  balances,
      subject in the aggregate to the variance  referred to in Section 1(a) and,
      as to any particular Class, to an upward or downward variance of up to 5%:




               Class Principal        Interest          Class Purchase
Class             Balance               Rate          Price Percentage
-----          ---------------      -----------       ----------------
B-1            $9,136,000.00        Variable(1)           99.520000000%
B-2            $3,780,000.00        Variable(1)           98.780000000%
B-3            $2,205,000.00        Variable(1)           96.970000000%

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(1)   The interest rates for the Offered  Certificates  are variable and will be
      calculated as described in the Prospectus Supplement.

            (b) The Offered  Certificates shall have such other  characteristics
      as described in the related Prospectus.

      Section  3.  Purchase  Price:  The  Purchase  Price for each  Class of the
Offered  Certificates shall be the Class Purchase Price Percentage  therefor (as
set forth in Section 2(a) above) of the initial Class Principal  Balance thereof
plus accrued interest at the per annum initial interest rate applicable  thereto
from and including the Cut-off Date up to, but not  including,  October 28, 2005
(the "Closing Date").

      Section 4. Required Ratings:  The Offered Certificates shall have received
Required  Ratings of (i) at least "AA" from Standard & Poor's, a division of The
McGraw-Hill Companies,  Inc. ("S&P"), in the case of the Class B-1 Certificates,
(ii) at least "A" from S&P, in the case of the Class B-2 Certificates, and (iii)
at least "BBB" from S&P, in the case of the Class B-3 Certificates.

      Section 5. Tax Treatment:  One or more elections will be made to treat the
assets of the Trust Fund as a REMIC.


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      If  the  foregoing  is  in  accordance  with  your  understanding  of  our
agreement,  please  sign and return to the  undersigned  a  counterpart  hereof,
whereupon this letter and your acceptance  shall  represent a binding  agreement
between the Underwriter and the Company.

                                          Very truly yours,


                                          GOLDMAN, SACHS & CO.


                                          By:
                                            ------------------------------------
                                            (Goldman, Sachs & Co.)



The foregoing Agreement is
hereby confirmed and accepted
as of the date first above written.


FIRST HORIZON ASSET SECURITIES INC.


By:
  ----------------------------------
  Name:  Alfred Chang
  Title: Vice President


FIRST HORIZON HOME LOAN CORPORATION


By:
  ----------------------------------
  Name:  Terry McCoy
  Title: Executive Vice President


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