Mortgage Glossary – E
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
Earnest Money
Deposit made by a buyer towards the down payment in evidence of good faith delivered with a purchase offer.
Easement
A right of way giving persons other than the property owner access to or over a property.
Encroachment
An improvement that illegally violates another’s property or right to use that property.
Equifax
One of the three largest credit bureaus in the United States.
Equal Credit Opportunity Act (ECOA)
Federal law requiring 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 or past exercising or rights under the Consumer Credit Protection Act.
Equity
The difference between the current market value of a property and the total debt obligations against the property.
Escrow
A transaction in which a third party acts as the agent for seller and buyer, or for borrower and lender, in handling legal documents and disbursement of funds. In some parts of the US escrow of taxes and insurance premiums are called impound or reserves.
Escrow Account
The segregated trust account in which escrow funds are held. The lender disburses escrow account funds on behalf of the borrower when they are due.
Escrow Agent
A person or organization with fiduciary responsibility to the buyer and seller, or the borrower and lender, to ensure that the terms of the purchase/sale or loan are carried out.
Experian
One of the three largest credit bureaus in the United States.
