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| Earnest Money Deposit |
Money given to a seller by a buyer to show the seller that an offer to purchase real estate or other real property is a serious, binding offer. If the seller accepts your offer, this deposit will not be returned to you unless one of the contingencies of the offer has not been met. When you are buying a home and you are ready to make an offer, you’ll need to give the seller an earnest money deposit. |
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| Effective Rate Or Cost |
When you are quoted an APR, the total amount of that APR is calculated assuming that you will keep the loan for the entire term of the loan. There is a very good chance that you will sell your home before the mortgage is paid off, and the effective rate or effective cost reflects the total cost of the loan over the number of years that you actually intend to hold it. |
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| Encumbrance |
If you are thinking of purchasing a property and you find out that there is an encumbrance on the property, it means that there is a legal right or interest in the land that would affect you gaining clear title to the property if you purchased it. The title search that is performed on the property will usually reveal any encumbrances. |
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| Equal Credit Opportunity Act (ECOA) |
The Equal Opportunity Act is a federal law that states that a lender cannot take your race, color, national origin, religion, sex, age, marital status or any public assistance participation into consideration when determining whether of not to approve you for a loan. The Equal Credit Opportunity Act was enacted in 1974 and creditors that don’t comply face severe penalties. |
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| Equity |
The equity in your property represents the difference between what you owe to creditors for loans against the property and how much the property is worth. When you take out a new mortgage, the down payment that you put down is your equity in the home. As the home appreciates in value and as you pay down the principal balance of your mortgage, your equity goes up. |
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| Equity Line Of Credit |
When you take out an equity line of credit, a revolving line of credit is issued to you and you will be able to borrow against that line of credit as funds are needed. Your credit limit will be determined by a combination of your credit history and the equity in your home. The lender who holds your equity line of credit will have a lien against your home for the maximum of the loan amount. |
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| Escrow |
The process of utilizing the services of a third party to oversee the exchange of funds and property between a buyer and seller. When purchasing a property, the escrow agent acts as a custodian of your funds and ensures that the appropriate funds are paid at the closing of the loan and that the property is appropriately conveyed. |
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| Escrow Account |
An account that is held by a lender or an escrow agent. Funds are placed into the account for a specific purpose. When the funds are needed for that purpose, they are paid out of the escrow account. When you have a mortgage, a certain amount of your payment normally goes into an escrow account, out of which your property taxes and insurance payments are made. |
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| Escrow Analysis |
When you have funds placed into an escrow account for the purpose of paying expenses like your property taxes and insurance, a periodic examination of the balance of the account is conducted to ensure that the monthly payments you are making will be enough to cover the expenses that are paid from the account when they become due. |
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| Examination Of Title |
When you conduct an examination of title, you are searching the public records or the abstract of title to discover previous owners and any liens or encumbrances on the property. |
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| EZ Doc |
An ez doc loan is a trademarked name for a residential home loan program that is generally the same as a limited documentation or stated income loan. When you apply for this type of loan, you state your income on the loan application, but are not required to provide any verification or proof of your income to the lender. |
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