Mortgage Glossarye
What is Earnest money?
Deposit made by a buyer in evidence of good faith when the purchase agreement is…
What is ECOA?
ECOA is abbreviation of Equal Credit Opportunity Act. Federal law requiring creditors to make credit equally available without discrimination based on race, color, religion, national origin, age,…
What is Effective Gross Income?
A borrowers normal annual income, including overtime that is regular or guaranteed. Salary is usually the principal source, but other income may qualify if it is significant and…
What is Effective interest rate?
The cost of a mortgage expressed as a yearly rate, usually higher than the interest rate on the mortgage since this figure includes up-front…
What is Encumbrance?
A legal right or interest in a property that affects title and lessens the property value. Encumbrances can take the form of claims, liens, unpaid taxes and so on. These will usually have to be taken…
What is Equal Credit Opportunity Act (ECOA)?
Federal law requiring creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of income from public…
What is Equity?
The percentage of property value held by the owner; the difference between the current market value of a property and the outstanding mortgage…
What is Equity loan?
A loan based on the borrower's equity in his…
What is Escrow?
The neutral third party that holds money and/or documents until the escrow instructions are fulfilled and escrow can be a title company or an attorney, depending on state…
What is Escrow account?
Account held by a lender containing funds collected as part of mortgage payments for annual expenses such as taxes and insurance, so that the homeowner does not have to pay a large sum when these…
What is Escrow Disbursements?
The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become…
What is Escrow Payment?
The part of a mortgagor’s monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become…
What is Escrow waiver?
Escrow Waiver is waiver of the requirement to fund an escrow account with lender and instead pay insurance and taxes separately. This waiver may require a fee and is not available with all loan…
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