Glossary of Mortgage Terms

The upfront mortgage insurance premium, or UFMIP, is a one-time fee of 1.75% of your base loan amount that all FHA borrowers pay at closing to protect the lender if you default on your mortgage.

A USDA construction loan is a government-backed mortgage that lets qualified borrowers buy land and build a new main home in a rural area that meets certain requirements. There is no down payment and only one closing.

A USDA loan is a government-backed mortgage from the U.S. Department of Agriculture that helps people who live in rural and suburban areas buy a home with no money down.

A USDA refinance replaces an old USDA-backed mortgage with a new USDA loan. This is usually done to get a lower interest rate, lower monthly payments, or change the loan term for homeowners in eligible rural and suburban areas.

A utility easement is a legal right that lets a utility company use a specific part of your private property to install, maintain, or repair infrastructure like power lines, water pipes, or sewer systems.