Mortgage terms and definitions for
home buyers, home sellers, and real estate consumers. Use
the links below to find the word you're looking for.
Money Deposit -
A deposit made by a potential home buyer to show that they
are serious about purchasing the property.
Giving other persons, other than the owner, access to a
The government right to take private property for public
use depended on the payment of its fair market value.
Any lien against a property or any restriction it its use,
such as an easement; a right or interest in a property held
by one who is not the legal owner.
Credit Opportunity Act (ECOA) -
The act declaring the elimination of discrimination on the
basis of age, sex, and race in finance.
The difference between the current market value of a property
and the principal balance of all outstanding loans.
A clause in a loan providing for increases in payments or
interest based on pre-determined schedules or on a specific
economic index, such as the consumer price index.
A third party agent that receives, holds, and/or disburses
certain funds or documents upon the performance of certain
conditions. For example, an earnest money deposit is put
into escrow until the transaction is closed. Only then can
the seller receive the deposit.
Account (impound account) -
An account that a borrower can hold with a lender once a
purchase transaction is closed. This requires borrowers
to pay more than the principal and interest each month.
The overage is put into escrow, which the lender uses to
pay items like property taxes and homeowner's insurance
when they are due. This eliminates the actual number of
payments that a homeowner has to worry about, but not the
amount that has to actually be paid.
An analysis performed by a lender each year to escrow account
holders to ensure that the correct amount of money is being
collected to cover anticipated payments.
These costs cover the preparation and transmission of all
home purchased-related documents and funds. Escrow fees
range from several hundred to over a thousand dollars, based
on the purchase price of your home. Not all states require
funds to be put into escrow accounts for closing.
The ownership interest an individual holds in real property.
This is also the sum total of all the real property and
personal property owned by an individual at time of death.
The legal removal of real property occupants for unlawful
actions carried out by those occupants.