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
L
- Late
charge
The penalty a borrower must pay when a payment is made a stated number of days (usually
15) 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.
- Lender option commitments
An agreement giving a lender the option to deliver loans or securities by a certain date
at agreed-upon terms.
- Liabilities
A person's financial obligations. Liabilities include long-term and short-term
debt, as well as any other amounts that are owed to others.
- Lien
A legal claim against a property that must be paid off when the property is sold. Such
claims may include obligations not met or satisfied, judgments, unpaid taxes, materials,
or labor. (see also Special lien.)
- Lifetime
payment cap
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or
decrease over the life of the mortgage. See Caps
(payment).
- Lifetime
rate cap
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can
change over the life of the loan. See Caps
(interest).
- Line
of credit
An agreement by a commercial bank or other financial institution to extend credit up to a
certain amount for a certain time to a specified borrower.
- Liquid
asset
A cash asset or an asset that is easily converted into cash.
- Loan
A sum of borrowed money (principal) that is generally repaid with interest.
- Loan
origination
The process by which a mortgage lender brings into existence a mortgage secured by real
property.
- Loan
servicing
The tasks a lender performs to protect a mortgage investment, including collecting monthly
payments from borrowers and dealing with delinquencies.
- Loan-to-value
(LTV) ratio
the relationship between the dollar amount of a borrower's mortgage loan and the appraised
value of the property expressed as a percentage.
- Lock-in
A written agreement in which the lender guarantees a specified interest rate if a mortgage
goes to closing within a set period of time. The lock-in also usually specifies the number
of points to be paid at closing.
- Lock-in period
The time period during which the lender has guaranteed an interest rate to a borrower. See Lock-in.
- Loss
mitigation
activities designed to reduce either the likelihood of the corporation suffering financial
losses on a loan or the final dollar value of those losses in the event of a borrower
default.
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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