| Term |
Definition |
| Earnest Money |
Money given by a buyer to a
seller as part of the purchase price to bind a transaction or assure
payment. |
| Easement Rights |
A right-of-way granted to a
person or company authorizing access to or over the owner's land. An
electric company obtaining a right-of-way across private property is
a common example. |
| Elderly Applicant |
As defined in the Equal
Credit Opportunity Act, a person 62 or older. |
| Electronic Fund
Transfer (EFT) Systems |
A variety of systems and
technologies for transferring funds electronically rather than by
check. |
| Electronic Payment |
A time saving payment
method where your loan payment is automatically deducted from your
checking or savings account. You may be able to get a lower interest
rate and you don't have to mail in your payment each month. You may
also be able to choose your payment date. |
| Encroachment |
An obstruction, building,
or part of a building that intrudes beyond a legal boundary onto
neighboring private or public land, or a building extending beyond
the building line. |
| Encumbrance |
A legal right or interest
in land that affects a good or clear title, and diminishes the
land's value. It can take numerous forms, such as zoning ordinances,
easement rights, claims, mortgages, liens, charges, a pending legal
action, unpaid taxes, or restrictive convenants. An encumbrance does
not legally prevent transfer of the property to another. A title
search is all that is usually done to reveal the existence of such
encumbrances, and it is up to the buyer to determine whether he
wants to purchase with the encumbrance, or what can be done to
remove it. |
| Equal Credit
Opportunity Act (ECOA) |
Is 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 and current indebtedness, also referred to as the
owner's interest. |
| Equity and Fees |
The difference between the
Fair Market Value and current indebtedness, plus the Closing Cost
Fees to close the loan. |
| Escrow |
Refers to a neutral third
party who carries out the instructions of both the buyer and seller
to handle all the paperwork of settlement or "closing." Escrow may
also refer to an account held by the lender into which the homebuyer
pays money for tax or insurance payments.
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