Earnest Money
A sum of money given as evidence of one's good faith, used to bind a real estate sale. Also known as a 'Binder.'

Earthquake Insurance
Insurance that compensates for physical property damage resulting from earthquakes to an extent depending upon the terms of the policy.

Easement
A right of way giving persons other than the owner access to or over a property.

Effective Age
An appraiser's estimate of the physical condition of a building. The actual age of a building may be shorter or longer than its effective age.

Eighty-ten-ten (80/10/10)
Also known as a 'Combination Loan.' A loan in which you receive a first mortgage for 80 percent of the loan amount and a second mortgage at the same time for the remainder of the balance. If the borrower is trying to avoid PMI (mortgage insurance) it is important to consider a combination loan or the Advantage 90® loan.

Encumbrance
Anything that affects or limits the fee simple title to a 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, marital status, or receipt of income from public assistance programs. ECOA also requires lenders to provide written notification to a consumer when his or her loan application cannot be approved as requested, including the specific reasons for the decision.

Equity
The value of a property minus outstanding mortgage debt and other liens. Equity is the portion of your property that you have already paid for plus the appreciation, less the decline if any, in the value of the property since you acquired it.

Escrow
The legal relationship between a buyer, seller, and a third party holding money or papers until all conditions of a sales agreement and loan is fulfilled.

Escrow Account
An account held by the lender/servicer, into which a borrower makes monthly installment payments for property taxes, insurance and special assessments. The lender/servicer disburses these sums as they become due. This type of account is sometimes known as an 'Impound Account.'

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 Deposit Account
Also known as Reserves. The portion of a borrower's monthly payment held by the lender to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they come due. See also Impound Account.

Escrow Disbursements
The use of escrow funds to pay real estate taxes, hazard insurance, mortgage insurance, and other property expenses as they become due.

Escrow Fee
Fee charged by the escrow company for handling escrow activities including paying off liens and clearing title and other debts.

Escrow Holdback
Also known as Holdback. Money held at closing to pay for specific upgrades or repairs that are completed after closing.

Escrow Payment
The portion of a mortgagor's monthly payment that is held by the servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as 'impounds' or 'reserves' in some states.

Estate
The ownership interest of an individual in real property. The total sum of all the real property and personal property owned by an individual at time of death.

Estimated Market Value
The dollar amount you believe your present home would be worth if you decided to sell it today.