-E- Mortgage Terms Glossary

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Mortgage Terms Glossary

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Earnest Money: a cash deposit paid by the buyer during negotiations to demonstrate serious interest in purchasing the property.
Equity: the difference between the fair market value of the property and the homeowner's mortgage debt. Equity increases as a mortgage is paid and/or the property appreciates.
Escrow: usually refers to an account set up by the lender in which money is held to pay taxes and insurance.
Escrow Payment: the portion homeowner's monthly payment held in trust by the lender to pay for taxes and insurance. Also known as "impounds" in some states.