Glossary of Mortgage Terms

A spec house is a new home built by a builder or developer without a specific buyer in mind. It is meant to be sold on the open market based on current real estate demand and popular design trends.

Your local government uses a special assessment tax, which is an extra charge on your property tax bill, to pay for a specific neighborhood improvement, such as new roads or sewer lines.

A subordination agreement is a legal document that changes the priority order of liens on your property, letting one lender move ahead of another in the repayment line.

Sweat equity is the increase in a property's value that comes from the homeowner's own work and improvements, not from hiring professionals to do the work.

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.