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home :: Mortgage Terms
Glossary E
Mortgage Terms Glossary
E
Earnest money: money put down by a
potential buyer to show that he or she is serious about purchasing
the home; it becomes part of the down payment if the offer is
accepted, is returned if the offer is rejected, or is forfeited if
the buyer pulls out of the deal.
Easement: the right one party has in
regard to the property of another, such as the right of a public
utility company to lay lines.
EEM: Energy Efficient Mortgage; 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: a federal
law prohibiting lenders and other creditors from discrimination
based on race, color, sex, religion, national origin, age, marital
status, receipt of public assistance or because an applicant has
exercised his or her rights under the Consumer Credit Protection
Act.
Equity: an owner's financial interest
in a property; calculated by subtracting the amount still owed on
the mortgage loon(s)from the fair market value of the property.
Escape clause: a provision allowing one
party or more to cancel all or part of the contract if certain
events fail to happen, such as the ability of the buyer to obtain
financing within a specified period.
Escrow account: a separate account into
which the lender puts a portion of each monthly mortgage payment; an
escrow account provides the funds needed for such expenses as
property taxes, homeowners insurance, mortgage insurance, etc.
Related
Topics:
Residential Mortgage Loans
Home Equity Lines of
Credit Get Out of Debt
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