Glossary of Mortgage Terms

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.

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.