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Mortgage
Glossary - Mortgage and Real Estate Terms Sorted Alphabetically:
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E - earned and unearned income, earnest money, easement, economic life…more
EARNED AND UNEARNED INCOME - two different sources of income: while earned
income comes from wages, salary or business profits, unearned income refers to
interest, dividends, rental income, pension benefits, and several other defined
sources.
EARNEST MONEY - a deposit made to bind the conditions of sale of real property.
EASEMENT - a right to the limited use or enjoyment of land held by another.
Also, an interest in land to enable sewer or other utility lines to be laid or
to allow access to a property.
ECONOMIC LIFE - the estimated period of time during which a property can be
used by its owners to produce income.
ECONOMIC VALUE - the value of a property based on its earning potential.
EFFECTIVE AGE - for purposes of appraisal, the physical age given to a building
based on its present condition, which may differ from its actual age.
EFFECTIVE GROSS INCOME (PERSONAL) - normal annual income including overtime
that is regular or guaranteed. This income may be from more than one source.
Salary is normally the principal source, but other income may qualify if it is
significant and stable, and is expected to continue over a minimum two year
period.
EMINENT DOMAIN - the right of governmental bodies, public utilities, and public
service corporations to take private property for public use (e.g., schools and
roads), upon payment of its fair market value.
ENCROACHMENT - an improvement that illegally violates another's property or
rights to use that property.
ENCUMBRANCE - anything that affects or limits the fee simple title to real
property such as mortgages, leases, easements or restrictions.
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, sexual preference, marital
status, or receipt of income from public assistance programs -- it's also
called Regulation B.
EQUITY - the difference between the fair market value and current indebtedness,
also referred to as the owner's interest.
ESCAPE CLAUSE - a clause that allows an applicant to cancel in situations that
would not necessarily justify cancellation. ESCROW - a special account set up
by the lender in which money is held to pay for taxes and insurance. "Escrow"
can also refer to a third party who carries out the instructions of both the
buyer and seller to handle the paperwork at the settlement.
ESCROW AGENT - the person or organization, having a fiduciary responsibility to
both the buyer and seller (or lender and borrower) to see that the terms of the
real property purchase/sale (or loan) are carried out as agreed. Also called
escrow company or escrow depository.
ESCROW ANALYSIS - the periodic examination of escrow accounts to determine if
current monthly deposits will provide sufficient funds to pay taxes, insurance
and other bills when due.
ESCROW COMPANY - an organization established to act as an escrow agent.
ESCROW CONTRACT - a three-party agreement, between the buyer, seller and escrow
agent, specifying the rights and duties of each in the real property transfer
transaction.
ESCROW OVERAGE OR SHORTAGE - the difference, determined by escrow analysis,
between escrow funds on deposit, and escrow funds required to make an "escrow
payment" when it becomes due.
ESCROW PAYMENT - that portion of a mortgagor's monthly payments held by a
lender or servicer, to pay taxes, hazard insurance, mortgage insurance, lease
payments, or other items as they become due. These are also called impounds or
reserves in some states.
ESTATE - the ownership interest an individual has in real property. The sum
total of all the real and personal property owned by an individual at the time
of death.
EVICTION - the lawful expulsion of an occupant from real property.
EVIDENCE OF TITLE - proof of ownership of real property.
EXAMINATION OF TITLE - the review process of the chain of title, as revealed by
an abstract of title or public record.
EXCLUSIVE LISTING - a written contract giving one licensed real estate agent,
the exclusive right to sell a parcel of real property for a specific period of
time.
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A
- adjustable rate mortgage, adjustment interval, amortization, annual
percentage rate (APR)…more
B – balloon mortgage, bankruptcy, basis point, beneficiary…more
C - caps, cash flow, cash out (second mortgage), cash out refinance…more
D - debt consolidation, debt service, debt reduction plan, debt-to-income
ratio…more
F - Fair Credit Reporting Act, fair market value, Fannie Mae…more
G - good faith estimate, grace period, gradual payment mortgage (GPM),
grantee…more
H - home equity, home improvement loan, Home Mortgage Disclosure Act
(HMDA)…more
I - index, in file credit report, inflation, initial interest rate, ingress and
egress…more
L - lender buy-down mortgage, liability insurance, LIBOR, loan application…more
M - manufactured home, market value, maximum loan amount, mechanic’s lien…more
N - negative amortized (Neg/AM), Neg AM Loans, negative cash flow, net
worth…more
O - obsolescence, off-site improvements, on-site improvements, ordinary
income…more
P – par, partial payment, partnership, party wall, payment shock…more
Q – quality control, quit claim deed, quote…more
R – rate shopper, real property, real estate loans, reconciliation…more
S – sales contract, satisfaction or mortgage, seasoned mortgage, second
mortgage…more
T – tax lien, tenancy in common, tenant, term, title, title insurance…more
U – underwriting, unencumbered property, uniform commercial code (UCC)…more
V – VA (Department of Veterans Affairs) Mortgage, vacancy rate, VA funding
fee…more
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E - earned and unearned income, earnest money, easement, economic life…more
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