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Mortgage glossary
Whether you are buying a home or refinancing, applying for a mortgage is a big step. Use our mortgage glossary to help you through the process. Our comprehensive glossary of mortgage loan terms is even used by loan officers and real estate professionals. Bookmark our mortgage glossary as a quick mortgage definitions and vocabulary reference. |
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- Late charge
Lenders impose late fees on borrowers who don't pay in a timely fashion.
- Lien
A legal claim against property for payment of a debt. Liens must be paid or settled before property can be sold because they cloud the legal title.
- Line of credit
Up to a certain maximum, consumers may borrow any amount for a specified time under a line of credit. Revolving credit accounts such as credit cards and home equity lines of credit are examples of lines of credit.
- Liquidation
When a debtor's property is liquidated, it is sold and the money raised goes to creditors.
- Loan application
A document on which a prospective borrower lists details about his or her finances. Used by lenders to check credit and decide whether to grant a loan.
- Loan commitment
A promise by a lender to give a borrower a certain amount of money at a certain rate.
- Loan origination fee
The underwriting charge from a lender. The charge is often expressed in points, and a point is 1 percent of the loan amount.
- Loan term
The period of time you have to pay back a loan. It will be spelled out in loan documents.
- Loan-to-value ratio (LTV)
The loan divided by property value. If the house is valued at $200,000 and the loan is $180,000, the LTV is 80 percent. Borrowing above 80 percent LTV is considered risky by lenders, and they charge some sort of premium for it. In mortgages, borrowing more than 80 percent of the home's value usually triggers the need for private mortgage insurance. In home equity borrowing, you must pay a higher rate.
- Lowball offer
A bid or offer far below market value.
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| National
mortgage rates |
| 11/21/2009 4:58:31 AM
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