Loan Glossary
Plain-English definitions for every term you'll encounter in the loan process
Showing 3 terms
in General starting with E
E
Earnest Money
GeneralA deposit made by a buyer to show serious intent when making an offer on a property. Typically 1%–3% of the purchase price, it is applied toward the down payment at closing.
Equity
GeneralThe difference between a property's market value and the outstanding loan balance. Equity grows as the borrower makes payments and/or the property appreciates in value.
Escrow
GeneralA neutral third party that holds funds or documents during a real estate transaction until all conditions are met. Lenders also use escrow accounts to collect and pay property taxes and insurance on behalf of borrowers.