E,F & G's more terms for buyers to know.
Easement A right of land use by someone who does possess the property. Often times you see this with driveways that are owned by one homeowner but a right-of-way is permitted to another homeowner.
Encroachment Encroachment is when a neighbor builds something on your property. One of the more common encroachment issues is fencing.
Encumbrance An encumbrance is a claim, liability, or lien associated with a property.
Equity The difference between what you owe on the home and what it is worth. For example, if a home is worth $200,000 and the owner owes $100,000 on the mortgage, they have $100,000 equity in the home.
Escrow Funds held by a third party until closing the sale of a home. They handle any arrangements or follow written instructions from buyers and sellers. Using the service does mean you will be paying a fee, but this fee is generally part of your closing costs.
Escrow Agent A person or firm who takes care of escrow arrangements for a fee.
Fair Market Value An estimate of a home’s market value, based on what a buyer would expect to pay for a comparable property in a competitive market.
Fannie Mae Fannie Mae is the nickname for the Federal National Mortgage Association (FNMA). The FNMA is a private entity that purchases and guarantees FHA, VA, and conventional mortgages.
Federal Housing Administration (FHA) The FHA provides mortgage insurance on FHA approved loans and sets standards for both construction and underwriting.
FHA Insured Loan They are insured by the FHA and are very popular with buyers because they are available with low down payments and often less stringent standards.
Financing The funds, typically a mortgage, used to pay for a home.
Finance Charge Paid by a buyer to secure a mortgage loan and generally consisting of credit report fees, discount points, interest, origination fee, and service charges.
First Mortgage The mortgage whose lien is higher than any other mortgage or lien on the same property. Most often they are the first recorded.
Fixed Rate Mortgage The interest rate remains the same over the life of the loan. The most common are 30 year mortgages.
Fixture A fixture is anything of value that is permanently attached to or part of a home. or a part of real property.
Foreclosure A defaulted mortgage where the lender takes possession to sell the home.
Freddie Mac Freddie Mac is the nickname for Federal Home Loan Mortgage Corporation (FHLMC). The FHLMC is owned by the Federal Home Loan Bank System and buys FHA, VA, and conventional mortgages.
Ginnie Mae Ginnie Mae is the nickname for the Government National Mortgage Association (GNMA). GNMA is a government agency that buys FHA and VA mortgages.
Good Faith Estimate An itemized estimate of the various fees a buyer will have to pay at closing. Federal Law says lenders must provide it within 3 business days of an initial loan application.