Mortgage Terminology
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
Late Charge
The penalty a borrower must pay when a payment is made a stated number of days after the due date.
Lease-Purchase Mortgage Loan
An alternative financing option that allows low and moderate income home buyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage, plus an extra amount that accumulates in a savings account for a down payment.
Liabilities
A person's financial obligations. Liabilities include long term and short term debt.
Lien
A claim upon a piece of property for the payment or satisfaction of a debt or obligation.
Lifetime Payment Cap
A limit on the amount that the payments can increase or decrease over the life of an adjustable rate mortgage (ARM).
Lifetime Rate Cap
A limit on the amount that the interest rate can increase or decrease over the life of an adjustable rate mortgage (ARM). See cap.
Loan
A sum of borrowed money (principal) that is generally repaid with interest.
Loan-to-Value Ratio
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.
Lock
A lender's guarantee that the mortgage rate quoted will be good for a specific number of days from the day of application.
The penalty a borrower must pay when a payment is made a stated number of days after the due date.
Lease-Purchase Mortgage Loan
An alternative financing option that allows low and moderate income home buyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage, plus an extra amount that accumulates in a savings account for a down payment.
Liabilities
A person's financial obligations. Liabilities include long term and short term debt.
Lien
A claim upon a piece of property for the payment or satisfaction of a debt or obligation.
Lifetime Payment Cap
A limit on the amount that the payments can increase or decrease over the life of an adjustable rate mortgage (ARM).
Lifetime Rate Cap
A limit on the amount that the interest rate can increase or decrease over the life of an adjustable rate mortgage (ARM). See cap.
Loan
A sum of borrowed money (principal) that is generally repaid with interest.
Loan-to-Value Ratio
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.
Lock
A lender's guarantee that the mortgage rate quoted will be good for a specific number of days from the day of application.
