Mortgage Glossary, Loan
Terms and Economic Terms for Interest Only Loans
*To
begin, please click on the first letter
of
the term you are looking for:
*Please view also the Economic
Terms. |
|
Mortgage Glossary - L Terms
Lease purchase: assists
low- to moderate-income homebuyers in purchasing a home by allowing
them to lease a home with an option to buy; the rent payment is
made up of the monthly rental payment plus an additional amount
that is credited to an account for use as a down payment.
Lien: a legal claim against
property that must be satisfied When the property is sold
Loan: money borrowed that is
usually repaid with interest.
Loan fraud: purposely
giving incorrect information on a loan application in order to better
qualify for a loan; may result in civil liability or criminal penalties.
Loan-to-value (LTV) ratio: a
percentage calculated by dividing the amount borrowed by the price
or appraised value of the home to be purchased; the higher the LTV,
the less cash a borrower is required to pay as down payment.
Lock-in: since interest rates
can change frequently, many lenders offer an interest rate lock-in
that guarantees a specific interest rate if the loan is closed within
a specific time.
Loss mitigation: a
process to avoid foreclosure; the lender tries to help a borrower
who has been unable to make loan payments and is in danger of defaulting
on his or her loan
|
