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Late charge
The penalty charged to the borrower when a payment is made past
the due date and any allowable grace period.
Lender
An individual or business entity making a loan.
Lien
A legal claim of a creditor on the property of another as security
for a debt.
Lien holder
An individual or entity that has placed a lien on real property.
Lifetime adjustment
cap
A limit on how much the variable interest rate can increase during
the term of a loan.
Line of credit
An agreement by a lender to extend credit up to a maximum amount
for a specified time. In a home equity line of credit, the line
of credit is secured by the borrower's home.
Listing price
The asking price of the home, or the price the home is listed for.
Liquidate
To sell assets for the purpose of accumulating cash.
Loan
Money lent at an interest,
on the promise that it will be repaid on at a predetermined time.
Loan application
The process of providing financial and other information (such as
employment history and proposed collateral) by a prospective borrower
in conjunction with a request for credit.
Loan amount
The amount of debt, not including interest.
Loan term
The period of time during which a loan must be repaid. For example,
a 30-year fixed loan has a term of 30 years. Also called term. See
maturity date.
Loan-to-value
ratio (LTV)
The ratio between the unpaid principal amount of your loan, or your
credit limit in the case of a line of credit, and the appraised
value of your collateral. Expressed as a percentage.
Lock-in
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 more than 90 days. Generally, the longer the
lock period, the more you pay in points or interest.
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