Glossary of Mortgage Terms

A timeshare is a vacation property that several people own and share. Each owner buys the right to use a resort unit for a set amount of time each year, and they all pay for it and have access to it.

A townhouse is a multilevel, single-family home that shares one or more walls with neighboring homes. It has its own private entrance, the owner owns the land beneath it, and it is a unique mix of space and affordability.

TRID stands for the TILA-RESPA Integrated Disclosure rule, a federal regulation that requires mortgage lenders to give borrowers standardized Loan Estimate and Closing Disclosure forms so they can compare costs and understand loan terms before signing.

A turnkey property is a home that's fully updated and move-in ready, so the buyer can start living there right away without doing any repairs or renovations.

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.

The U.S. Department of Veterans Affairs backs VA construction loans, which let eligible veterans and service members pay for the building of a new home, often with no down payment needed.