E

Question 1

EARNEST MONEY

Answer 1

Money paid by a buyer to a seller at the time of entering a contract to indicate the buyer’s intent and ability to carry out the contract.

Question 2

ENCUMBRANCE

Answer 2

A claim against real property, such as a lien, judgment, security interest, unpaid taxes, or an easement, which may affect the ability to transfer ownership of the property.

Question 3

ENTITLEMENT

Answer 3

The loan amount that the VA guarantees when extending a loan to a veteran.

Question 4

EQUITY

Answer 4

The difference between the fair market value of a property and the current balances of any liens against the property.
a.k.a.: Home equity

Question 5

EQUITY-BASED LENDING

Answer 5

A lending decision that is based on the equity a borrower currently has available in the home, rather than on the borrower’s creditworthiness and repayment ability.

Question 6

ESCROW ACCOUNT

Answer 6

An account held by the lender into which the homebuyer deposits money for taxes and/or insurance payments. Escrow accounts may also hold other funds related to a real estate purchase, such as earnest money.

Question 7

ESCROW DISBURSEMENTS

Answer 7

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

Question 8

ESCROW PAYMENT

Answer 8

The part of a mortgagor’s monthly payment that is held by the loan servicer to pay for taxes, hazard insurance, mortgage insurance, and other expenses related to the loan.