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Houston Mortgage > Glossary >
Home Equity > E 1-10
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Early closing cost reimbursement
Some line-of-credit lenders waive underwriting costs when a line is opened in anticipation of future profits. If a line is then closed early, these institutions impose those fees retroactively.
Earned income
All the money you earn. This includes any wages, salaries, tips, net earnings (if you're self-employed) and any other income received for personal services. Investment income, such as dividends and interest, is not counted as earned income. See also Unearned Income.
Earnest money deposit
Money given by a buyer when making a formal offer to demonstrate that the buyer is serious. Also called a deposit.
Echeck
An electronic version or representation of a paper check. The account holder writes an echeck using a computer or other type of electronic device and transmits the echeck to the payee electronically. Like paper checks, echecks are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, echecks are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the echeck, receives credit, and the payee's bank clears the echeck to the paying bank. The paying bank validates the echeck and then charges the check writer's account for the check.
Effective age
An appraiser’s opinion of the physical condition of a building, regardless of its actual age.
Effective federal funds rate
The average interest rate that federal funds actually trade at in a day. The federal funds rate will remain stable for months at a time, but the effective rate is a volatile one that will vary every business day.
EFT
Electronic funds transfer. The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
Electronic check presentment
Called ECP for short, it captures an electronic image of the check at the point of sale. The image, rather than the paper check, is then processed by banks and clearinghouses. The way it works is that a depositing bank sends the paying bank (or a Federal Reserve Bank) an electronic transmission containing the details of a check, such as the amount, account number and check number, that the depositing bank will be presenting later in the day or the following business day.
Electronic funds transfer
The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.
Encumbrance
A lien, charge or liability against a property.
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Houston Home Mortgage