A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z |
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Terms: L |
| Late Charge |
| The penalty a borrower must pay when a payment is made a stated number of days (usually 10-15) after the due date. |
| Lease |
| A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may use the real estate for a specified period of time and the amount of rent to be paid. |
| Leasehold Estate |
| A tenant's interest in or right to hold possession of a property. |
| Legal Description |
| A property description, recognized by law, using a government rectangular survey, metes and bounds, or a plat map to sufficiently locate and identify a property. |
| Lender |
| The bank, mortgage company, or mortgage broker offering the loan. |
| Lender's Fees |
| Fees paid to the lender to cover costs associated with processing, underwriting and closing of the loan. |
| Liabilities |
| A person's debts or financial obligations. Liabilities include long-term and short-term debt, as well as potential losses from legal claims. |
| Liability Insurance |
| Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. See also homeowners insurance. |
| Lien |
| A legal claim against a property that must be paid off when the property is sold. A lien is created when you borrow money to purchase or refinance a home loan or and with obtain a home equity loan. |
| Lifetime Rate Cap |
| For an adjustable rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. |
| Line or Loan Amount |
| The entire HELOC or Fixed Rate Second mortgage loan amount. |
| Line of Credit |
| An agreement by a lender to extend credit up to a certain amount for a certain time without the need for the borrower to file another application. |
| Liquid Asset |
| A cash asset or an asset that is easily converted into cash. |
| Loan Amount |
| A sum of borrowed money (principal) that is generally repaid over time with interest. |
| Loan Commitment |
| A lender's agreement to advance money on specified terms after specified conditions are met. |
| Loan Origination |
| The process by which a mortgage lender makes a home loan and records a mortgage against the borrower's real property as security for repayment of the loan. |
| Loan-to-Value (LTV) Ratio |
| The ratio of the total amount borrowed on a mortgage against a property compared to the appraised value of the property. For example, if you have an $80,000 1st mortgage on a home with an appraised value of $100,000, the LTV is 80% ($80,000 / $100,000 = 80%). |
| Lock-In |
| A written agreement in which the lender guarantees a specified loan program interest rate and points if a mortgage goes to closing within a set period of time. |
| Lock-In Period |
| The time period during which the lender has guaranteed an interest rate to a borrower. |