Key terms
While working with your mortgage company, it’s important to understand the mortgage terms that may be used so you can have a better (and easier) discussion with your mortgage company.
Equity
Ownership interest in a property. This is the difference between the home's market value and the outstanding balance of the mortgage loan (as well as any other liens on the property).
Escrow
An account (held by the mortgage company) where a homeowner pays money toward taxes and insurance of a home.
Escrow Account
The actual account where the escrow funds are held in trust.
Escrow Analysis
A periodic review of escrow accounts to make sure that there are sufficient funds to pay the taxes and insurance on a home when they are due.