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 title company is a business that searches property records, issues title insurance, and helps with the closing process when you buy or sell a home.

Title insurance is a one-time policy that protects home buyers and mortgage lenders from financial loss due to undisclosed ownership claims, liens or other legal defects in a property’s title history.

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 Uniform Residential Loan Application, or the 1003 form, is the standard document that Fannie Mae and Freddie Mac require lenders to use to collect your financial and personal information when you apply for a mortgage.

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.