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home :: Mortgage Terms
Glossary L
Mortgage Terms Glossary
L
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.
life-of-loan cap: see cap
Liquidity: the ease with which an asset
can be converted into cash.
Loan: money borrowed that is usually
repaid with interest.
Loan discount: see points.
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 origination fee: see origination
fee.
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
Related
Topics:
Private Mortgages
First Time Home Buyer
Rent to Own Home
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