Mortgage Glossary
Easement
A right of way that allows you access to another owner's property for a specific purpose — for example, access to a water line.
Equal Credit Opportunity Act (ECOA)
A federal law requiring lenders to make credit equally available to all applicants without discrimination based on race, color, religion, national origin, age, sex, marital status, or receipt of public assistance.
Equity
Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000Your "financial interest" in a property, determined by subtracting all amounts owed from the property's current market value. Example: Property Current Market Value = $200,000 Mortgage Loans and Liens = $150,000 Owner's Equity = $50,000
Equity Line of Credit
An open-ended loan using the equity you have in your home as security for an approved line of credit. Also known as Home Equity Line of Credit (HELOC.)
Escrow
Your money that is set aside and held in trust by a third party. In a mortgage transaction the funds are commonly used for homeowner's insurance and property tax payments.
