Glossary of Mortgage Terms

A (14) | B (6) | C (19) | D (8) | E (6) | F (12) | G (5) | H (8) | I (7) | J (2) | K (1) | L (7) | M (12) | N (4) | O (2) | P (11) | Q (1) | R (8) | S (5) | T (8) | U (3) | V (3) | W (2) | Y (1) | Z (1)
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earnest money

Deposit in the form of cash or a note, given to a seller by a buyer as good faith assurance that the buyer intends to go through with the purchase of a property.

easement

The right one party has in regard to the property of another, such as the right of a public utility company to lay lines.

Equal Credit Opportunity Act

A federal law prohibiting lenders and other creditors from discrimination based on race, color, sex, religion, national origin, age, marital status, receipt of public assistance or because an applicant has exercised his or her rights under the Consumer Credit Protection Act.

equity

The value of a property beyond any liens against it. Also referred to as owner's interest.

escape clause

A provision allowing one party or more to cancel all or part of the contract if certain events fail to happen, such as the ability of the buyer to obtain financing within a specified period.

escrow

Money placed with a third party for safekeeping either for final closing on a property or for payment of taxes and insurance throughout the year.