Effective Interest Rate - The cost of a mortgage expressed as a yearly rate, usually higher than the interest rate on the mortgage since this figure factors in the up-front costs of acquiring the loan.

Encumbrance - A legal right or interest in a property that affects title and lessens the property value. Encumbrances can take the form of claims, liens, unpaid taxes, etc. These usually must be resolved before a buyer purchases the property.

Equal Credit Opportunity Act (ECOA) - Federal law requiring 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 percentage of property value held by the owner; the difference between the current market value of a property and the outstanding mortgage balance

Equity Loan - A loan based on the borrower's equity in his or her home.

Escrow - Neutral third party appointed to act as a custodian for documents and funds during the transfer of property from seller to buyer or in the course of refinancing property.