Mortgage
Terms
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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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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.
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
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can
increase or decrease over the life of the mortgage.
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. 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
Lender's guarantee that the mortgage rate quoted will be good for a specific
number of days from day of application.
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