The escrow agent's role is to protect either side of a transaction from the other side's unauthorized use of funds and to ensure an arms-length transaction between buyer and seller. Gap protection Insurance that covers the amount owed due to early termination of a lease agreement. Such early termination may occur when a car is stolen or seriously damaged in an accident. However, the auto insurer's payment may not be enough to pay off the lease balance and any early-termination penalties. Gross income Total income, before taxes or deductions.
Gross income is one of the factors lenders weigh when they review loan requests.
Home equity line of credit A revolving credit facility, collateralized by a mortgage lien, that allows a homeowner to borrow against the equity in the home. Unlike a home equity line of credit, home equity loan term and payment amounts are fixed. The cost of borrowing money or the rate of return earned on lending money, expressed as an annual rate. Interest rates can be calculated as simple, compounded or effective. It is the amount of interest paid at the end of the loan term divided by the loan amount.