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GLOSSARY
Endowment loan
An endowment loan is a specialized mortgage. During the life of the loan, the lender receives interest-only payments from the borrower. The principal payments are deposited into an endowment fund, where they earn interest and/or investment income. The full principal balance on the mortgage is then repaid at loan maturity.
Energy Efficient Mortgage
A "green" or "energy efficient" mortgage is a type of mortgage—that is ultimately rolled into your primary mortgage—that allows you to borrow funds earmarked specifically for energy efficient upgrades to your current home or to a home that you plan to purchase.
Enrolled agent
An enrolled agent is a certified professional who represents taxpayers in IRS disputes and interactions.
Enterprise zone
An enterprise zone is a bounded area where programs are in place to stimulate economic growth. Usually, businesses operating within an enterprise zone are offered tax breaks or government-funded assistance.
Environmental impact statement
This is a required evaluation, mandated by the government, of how construction will affect the environment surrounding a site.
Equal Credit Opportunity Act
Equal Credit Opportunity Act is a federal regulation that forbids discrimination on the basis of certain factors in credit transactions. Lenders may not use race, color, religion, age, marital status, etc. to qualify an applicant for debt. The only factors which can be used are related to the applicant's financial condition, such as income, credit history, and debt leverage.
Equal credit opportunity act (ECOA)
A requirement by Federal Law stipulating that lenders and other creditors have to make credit available equally to all without discrimination or prejudice based on color, caste, creed, race, sex, national origin, marital status or receipt fo income from public assistance programs.
Equated Monthly Installment - EMI
Equated monthly installment, or EMI, is a fixed principal and interest payment made against a debt each month, with the goal of paying off the debt over time. Usually, the borrower isn't allowed to pay more than the EMI each month.
Equifax
One of the three credit bureaus, also Experian and TransUnion.
Equitable distribution
Equitable distribution is a legal term for the fair division of property during a bankruptcy or divorce. Equitable distribution is different from the community property concept, which generally calls for splitting the assets evenly between the two parties in a divorce.
Equity
An individual's financial interest in his own property. It is the difference between the fair market value and the balance of the loan or mortgage amount still outstanding.
Equity income
Equity income is profit distributed to owners (i.e., equity holders). An individual investor earns equity income when one of his stock holdings pays a dividend. A company generates equity income when one of its subsidiaries is profitable. The term can also describe a type of mutual fund, where the holdings are chosen based on the ability to generate both dividend income and value growth.
Equity kicker
An equity kicker is an ownership incentive, such as a warrant, that's included in a debt arrangement. Equity kickers are added into the deal to make the debt investment more attractive.
Equity market
Equity market is a synonym for stock market. The term refers to an organized system of buying and selling stocks.
Equity mortgage
An equity mortgage is a real estate property loan that gives the lender a share of the proceeds when the property is sold. In essence, the lender gives the borrower a lower interest rate in exchange for an ownership share in the mortgaged property.