Look for words, Phrases & Definitions in Alphabetical Order:
L
Lally Column - A concrete filled steel pipe used to support beams.
Late Charge - An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.
Latent Defects - Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.
Lease - A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.
Lease Option - A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.
Leasehold Estate - A type of property ''ownership'' where the buyer actually has a long-term lease on the property.
Legal Description - The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.
Lender - The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.
Liabilities - A person's outstanding debt obligations.
Liability Insurance - Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another party.
Lien - Any claim against a piece of property resulting from a debt or other obligation.
Life Cap - A limit on how far the interest rate can move for an Adjustable Rate Mortgage.
Like-Kind Property - Any property which is substantially similar to another property.
Line of Credit - An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.
Liquid Asset - Any asset which can be quickly converted into cash at little or no cost, or cash itself.
Loan - Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.
Loan Officer - A person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.
Loan Origination - How a lender refers to the process of writing new loans.
Loan Servicing - The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc. Typically carried out by the company to whom you make payments.
Loan-to-Value Ratio (LTV) - The comparison of the amount owed on a mortgaged property to its fair market value.
Lock-In - An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.
Lock-In Period - The amount of time the lender has guaranteed an interest rate to a borrower.