Glossary
J
Judicial Foreclosure -
A court procedure used by lenders to secure clear title to a property under a
defaulted real estate loan.
Jumbo Loan -
A loan for $417,001 or more in the continental United States (Alaska and Hawaii
limits are higher). These limits are set by the Federal National Mortgage
Association and the Federal Home Loan Mortgage Corporation. Because jumbo
loans cannot be funded by these two agencies, they usually carry a higher
interest rate.
K
There are no mortgage words beginning with the letter K
L
Last Updated -
The Last Update column on a quotes results table tells you when the
information was last provided by the lender to our site. We always place new
listings at the top of each table so that you, the borrower, may have immediate
access to the most timely information. Times provided are all Eastern Standard
Time.
Lease -
A written agreement between a property owner and a tenant that stipulates the
payment and conditions under which the tenant may possess the real estate for
a specified period of time.
Leasehold Estate -
An estate for a fixed length of time, established when a landlord gives up
possession of real estate to a tenant, giving the tenant an equitable interest in
the property, as defined by lease terms.
Lease Option -
A rental agreement indicating a tenant's option to purchase a property. Monthly
payments consists not only of rent, but an overage that can be applied towards a
down payment on an already established amount.
Lender -
The bank, mortgage company, or mortgage broker offering the loan. Many
institutions only "originate" loans and then resell the obligation to third parties.
Leverage -
Using someone else's money for the purchase of property.
Liability Insurance -
Insurance that protects property owners against claims that alleges negligence
or inappropriate action that resulted in bodily injury or property damage to
another party.
LIBOR -
The London Interbank Offered Rate Index (LIBOR) is an average of the interest
rates that major international banks charge each other to borrow U.S. Dollars in
the London money market. Like the U.S. Treasury the CD indexes, LIBOR tends
to move and adjust quite rapidly to changes in interest rates.
Lien -
A legal claim by one party against the property of another as security for a debt.
Must be paid off when property is sold. A mortgage or a first trust deed is a lien.
Life of Loan Cap -
The maximum interest rate that can be charged during the life of the loan. Also
called Lifetime Cap. This value is often expressed as an increment above the
initial loan rate. For example, an adjustable rate loan with an initial rate of 7.25%
and a 6% lifetime cap will never adjust above a rate of 13.25% (7.25+6.0).
Loan -
The principal, or amount of total borrowed money, that is repaid with interest.
Loan Amount -
The amount of money that you intend on borrowing from a financial institution for
the purchase of your Home. Subtracting the down payment from the purchase
price of the Home will provide you with the loan amount.
Loan Officer -
An intermediary between lending institutions and borrowers, loan officers solicit
loans, represent creditors to borrowers, and represent borrowers to creditors.
Loan Origination -
What the process of obtaining new loans is called.
Loan Servicing -
A service performed by a lender to protect a mortgage investment, including
collecting monthly payments from borrowers and dealing with delinquencies.
Loan-To-Value Ratio -
The relationship between the amount of the mortgage loan and the appraised
value of the property expressed as a percentage. A LTV ratio of 90 means that a
borrower is borrowing 90% of the value of the property and paying 10% as a
down payment. For purchases, the value of the property is assumed to be the
purchase price, for refinances the value is determined by an appraisal.
Lock noun -
The period, expressed in days, during which a lender will guarantee a rate.
Some lenders will lock rates at the time of application while others will allow the
borrower to lock the rate after the application is taken. Request information from
your lender regarding lock procedures.
Lock verb -
The act of committing to a mortgage rate. This action, taken by a borrower some
time between the application and the closing dates, is sometimes accompanied
by a payment by the borrower to the lender.
Lock-in Clause -
Clause in a loan agreement that states that the borrower cannot repay a loan
prior to a specified date.
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| For additional questions please contact me at 281-650-7592 or via e-mail at kowens@closingjust4you.com |
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