Glossary of Mortgage Terms

The government has the constitutional right to take private property for public use, as long as the owner is paid a fair amount that is equal to the property's fair market value.

When a structure, fence, or landscaping from one property crosses the line and goes onto a neighbor's land without permission, it’s called an encroachment.

Equal opportunity housing is a set of federal and state laws that protect people from being discriminated against when they buy, rent, finance, or advertise housing because of their race, religion, sex, national origin, disability, or family status.

A mortgage lender or third-party servicer manages an escrow account, which is a holding account that collects and pays out money for property taxes, homeowners insurance, and other housing costs on behalf of a borrower.

A neutral third party holds deposits, documents, or both for a buyer and seller in an escrow account until everyone meets the terms of a real estate deal. “Escrow” also refers to the account your servicer keeps on your behalf to save for and pay yearly expenses, like property taxes and homeowners insurance after you buy.

An escrow account is a special account that your mortgage servicer keeps for you. They take part of each monthly payment to pay for property taxes and homeowners insurance when those bills come due.

Escrow fees are charges paid at closing to a neutral third party, such as an escrow company, title company, or real estate attorney, for managing the transfer of funds and documents between buyer, seller, and lender during a real estate transaction.

An escrow holdback is an agreement to set aside money in a third-party account at closing to pay for necessary repairs to the property that can't be done before the sale is final.

Fannie Mae, which stands for Federal National Mortgage Association (FNMA), is a government-sponsored business that buys and guarantees mortgage loans from lenders. This keeps money moving through the housing market so that more Americans can buy and refinance homes.

Fannie Mae HomePath is a website where you can look for and buy homes that Fannie Mae took back through foreclosure. These homes are often sold for less than their market value and come with special financing options.