Glossary of Mortgage Terms

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.

A VA guaranteed loan is a home loan that the U.S. Department of Veterans Affairs backs. It lets veterans, active-duty service members, and surviving spouses buy a home with no down payment and no private mortgage insurance.

A VA jumbo loan is a VA-backed mortgage that is higher than the conforming loan limit for the county where the property is located. This lets eligible veterans and service members buy more expensive homes.

A VA loan is a government-backed mortgage that veterans, active-duty service members, and surviving spouses can get. It lets them buy a home with no down payment and no need for private mortgage insurance.

Veterans and eligible service members can use a VA Streamline Refinance, also known as an Interest Rate Reduction Refinance Loan (IRRRL), to get a new VA loan with a lower interest rate or more stable terms to replace an existing VA-backed mortgage.

A variable interest rate means that the rate on your loan can go up or down over time based on changes in a market benchmark. This means that your monthly payment may change as the economy as a whole changes.

A variance is a legal exception given by a local government that allows a property owner to break zoning rules without changing the zoning classification itself.

Verbal verification of employment (VVOE) is a phone call your lender will make to your employer right before closing to verify that you still work in the job you listed on your mortgage application.