Glossary - E
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Mortgage Brokers Glossary - E
- Earnest Money:
- Money put down by a possible buyer to show which he or she is serious about purchasing the home; it becomes part of the down payment if the offer is received, is come back if the offer is rejected, or is forfeited if the buyer drags out of the deal.
- EEM (Energy Efficient Mortgage)
- An FHA program that assist homebuyers save money on utility bills by enabling them to funding the cost of adding energy efficiency features to a new or existing home as part of the home purchase.
- Equity:
- The difference between the value for which you could sell your property and what is owed against it. There is an important distinction from "down payment" to a lender. For example, if a buyer purchases a home without a down payment, he/ she can have "equity" if the value of the property quickly goes up.
- Escrow Account:
- A separate account into which the lender puts a part of each monthly mortgage payment; an escrow account present the funds needed for such expenses as mortgage insurance, property taxes, homeowners insurance, etc.
