GLOSSARY

This glossary is Alphabetical please choose your letter below.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

e

Earnest Money
Money given by a buyer when making an offer to a seller as part of the purchase price to bind a transaction or assure payment. It should be held in escrow by the real estate company, a title company or an attorney. This is usually returnable if the contract does not go through for valid reasons. It may not be returnable if the buyer just changes his mind. Also known as earnest, earnest deposit, earnest money deposit or deposit.

 

 
 
 
Earnings per Share ( EPS )
The net earnings of a corporation divided by the average number of shares of its common stock outstanding during a period. A common method of expressing a corporation's profitability.

 

Easement
A right of way giving persons other than the property owner access to or over a property.

 

Effective Rate
The interest rate adjusted for intra-year compounding. Also known as effective interest rate.

 

Encroachment
An improvement that illegally violates another's property or right to use that property.

 

Encumbrance
Anything that affects or limits the fee simple title to property, such as mortgages, liens, leases, easements, or restrictions.

 

Energy Efficient Mortgage (EEM)
An FHA program that helps homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase.

 

Equal Credit Opportunity Act (ECOA)
A federal law that requires lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, sex, marital status, handicap status or receipt income from public assistance programs.

 

Equity
The difference between the fair market value and current indebtedness, also referred to as the owner's interest.

 

Equity Grabbing
A type of predatory lending in which the lender seeks to acquire the customers built up equity in a property.

 

Equity Loan
A loan based on the borrower's equity in his or her home. Also referred to as home equity loan.

 

Escrow
Refers to a neutral third party who carries out the instruction of both the buyer and seller to handle all the paperwork of settlement or closing. Escrow may also refer to an account held by the lender into which the home buyer pays money for tax or insurance payments.

 

Escrow Account
An account set aside by your mortgage lender to pay for annual expenses such as homeowners insurance and property taxes. Part of your monthly mortgage payment goes into this account, so you don't have to make one lump payment when these expenses are due.

 

Escrow Agent
The person or organization having a fiduciary responsibility to both the buyer and seller (or lender and borrower) to see that the terms of the purchase/sale (or loan) are carried out. Also called escrow company or escrow depository.

 

Escrow Analysis
The periodic examination of escrow accounts to determine if current monthly deposits will provide sufficient funds to pay taxes, insurance, and other bills when due.

 

Escrow Overage or Shortage
The difference, determined by an escrow analysis, between escrow funds on deposit and escrow funds required to make a payment when it becomes due.

 

Escrow Payment
That portion of a mortgagor's monthly payments held by a lender or servicer to pay taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also called impounds or reserves in some states.

 

Executed
Officially signed, as in the execution of a deed or other document, with the intention that the person signing shall be bound by the contents.

 

Extending the Term
Lengthening the term of a loan beyond its original maturity.