Glossary of Terms
Credit Glossary
It's hard enough trying to stay on top of your credit let alone learn the industry lingo. We've compiled a glossary of industry terms to help you stay ahead of the curve when dealing with your credit, auto loans, home loans, debt, and savings.
- Early withdrawal
- When a certificate of deposit is withdrawn before the end of the agreed-upon term.
- Earnest money
- Money given to a seller by a potential buyer to show that he or she is serious about purchasing the home. The earnest money becomes part of the down payment if the offer is accepted, is returned if the offer is rejected, or is forfeited if the buyer pulls out of the deal.
- Electronic Funds Transfer (EFT)
- Any transfer of funds initiated electronically. Examples include Automated Teller Machine (ATM) transactions, point-of-purchase sales, direct deposit or withdrawal, phone transfers or computer transactions like online bill payment.
- Endorse
- To place a signature on the back of a document to legally declare transfer ownership.
- End-user
- The business that receives the credit report for decision-making purposes that meet the permissible purpose guidelines of the Fair Credit Reporting Act.
- Entitlement
- The VA home loan benefit is called an entitlement. This is also known as eligibility.
- Equal Credit Opportunity Act (ECOA)
- A federal law requiring lenders and other creditors to make credit equally available without discrimination based on race, color, religion, national origin, age, sex, marital status or receipt of income from public assistance programs.
- Equity
- The difference between the fair market value and current loan obligation on a specific property, also referred to as the owner's interest. The value an owner has in real estate over and above any obligation against the property.
- Escrow account
- A separate account into which the lender puts a portion of each monthly mortgage payment. An escrow account provides the funds needed for expenses such as property taxes, homeowners insurance, mortgage insurance, etc.
