Earnest Money
Money given by a buyer to a seller as part of the purchase price to bind a transaction or assure payment.
Effective Interest Rate
The cost of credit on a yearly basis expressed as a percentage.
Includes up-front costs paid to obtain the loan, and is, therefore,
usually a higher amount than the interest rate stipulated in the
mortgage note. Useful in comparing loan programs with different rates
and points.
Encumbrance
A claim against a property by another party which usually affects the ability to transfer ownership of the property.
Entitlement
The VA home loan benefit is called entitlement. Entitlement for a VA guaranteed home loan. This is also known as eligibility.
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, age, sex, marital status, or receipt of
income from public assistance programs.
Equity
The difference between the fair market value (appraised value) of your home and your outstanding mortgage balance.
Escrow
An account held by the lender into which the home buyer pays
money for tax or insurance payments. Also earnest deposits held pending
loan closing.
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