Looking to buy a home with an FHA loan? You’ll likely encounter terms that aren’t a part of your everyday vocabulary. But becoming familiar with them can help make the process of buying a house a lot easier. Here’s a primer.

Down payment

You’ve probably heard this one, but it bears mentioning. When you take out a loan, the down payment — or how much you “put down” — is the amount you pay upfront, according to Bankrate. Typically, you’d pay up to 20% on a conventional loan. An FHA loan, however, allows you to put down a very low amount.

Loan term

A home loan term is how long you’ll be making mortgage payments, says the Federal Housing Administration (FHA). The number of months your loan term spans comes down to the type of mortgage you get. Conventional loan terms can be in the range of 10, 15, 30 or 50 years. FHA loan terms are either 15 or 30 years.

Principal

The mortgage principle is the entire amount of money you borrow from a lender to buy a house, according to Forbes. You pay the principal back monthly.

Interest rate

The interest rate is a percentage of the principal that you pay monthly, says the Consumer Financial Protection Bureau (CFPB). Interest rates can either be fixed or adjustable, adds the FHA. If it’s fixed, it’ll stay the same until you pay off the loan or refinance. Adjustable rates can go up and down depending on the market.

Homeowners insurance

Homeowners insurance helps pay to repair or replace your house, structures on your property and personal belongings if they’re damaged by a covered incident. These include fires, theft, windstorms, falling objects, water damage from plumbing and more. It can also help protect your liability in case a guest is injured on your property and sues.

Home insurance isn’t required by law, but your lender may require you to buy it.

Mortgage insurance

If you pay less than 20% on a conventional loan, your lender will likely require private mortgage insurance, says the FHA. Since you’re putting in less money, it helps protect the lender in case you can’t make payments. FHA loans require mortgage insurance no matter what you put down.

Mortgage escrow

An escrow account is typically required by mortgage companies to pay for costs related to your home, according to Bankrate. They are set up by a third party to manage transactions.

There are two types of escrow accounts. One is used to make an initial deposit to buy a home, and the other is to pay home insurance and taxes. New homeowners making a down payment of less than 20%, or using an FHA loan, will typically need an escrow account.