| Term |
Definition |
| Late Payment |
A payment made later than
agreed upon in a credit contract and on which additional charges may
be imposed. |
| Lender |
Company that performs the
functions necessary to complete a mortgage transaction. Lenders
include approved sellers, mortgage brokers, and third-party
originators (TPOs). |
| Lender Fees |
These are items payable in
connection with the loan and contribute to the total amount of the
loan's closing costs. These are the fees that lenders charge to
process, approve and make the mortgage loan. See Closing Costs for
more information. |
| Lessee |
A person who signs a lease
to get temporary use of property. |
| Lessor |
A company that provides
temporary use of property usually in return for periodic payment.
|
| Liability on an Account
|
Legal responsibility to
repay debt. |
| Lien |
A claim upon a piece of
property for the payment or satisfaction of a debt or obligation.
|
| Liquid Assets |
Cash or assets that can be
immediately converted to cash |
| Loan Amount |
The amount of debt not
including interest. |
| Loan Program |
Defines the scope of your
mortgage, including the type of interest rate you have and the
mortgage term. For example, your loan program may be for 30 years
with a fixed rate or may be for 5 years with an adjustable rate.
|
| 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 Period |
A lock period refers to the
amount of time prior to closing that you can secure an interest rate
for your loan. Generally, lock periods range from 30 days to over 90
days. Generally, the longer the lock period, the more you pay in
points or interest. If your loan is "lockable", your Lender will
identify the available lock period. |
| Lockable |
You can "lock in" the
current interest rate for a set length of time, usually 30, 45 or 60
days. By "locking in" a rate the interest rate is locked and if
interest rates increase, your "locked in" rate will not change. To
lock an interest rate, you must enter into a written agreement with
your Lender. |
