Glossary of Mortgage Terms

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.

When you apply for a new home loan, your current or former loan servicer will give you a verification of mortgage (VOM) that shows your payment history, loan balance, and account status.

A warranty deed is a legal document that transfers ownership of property from the seller to the buyer. It also guarantees that the seller has clear title to the property, free of liens, encumbrances, or competing claims.

A wraparound mortgage is a type of seller financing in which the buyer's new loan "wraps around" the seller's existing mortgage. The buyer makes payments directly to the seller.

A zombie foreclosure occurs when a homeowner vacates a property after receiving a default notice, but the lender never completes the foreclosure, leaving the original owner still responsible for the home.

Zoning laws are local government rules that control how land can be used, what types of buildings can go on a property, and how those structures can be sized and placed.