Mortgage Glossary – L
A fee imposed on a borrower for not paying on time.
A sum a borrower sends to a lender that is received past the date when it was due.
The bank, mortgage company or mortgage broker offering the loan.
Letter of Intent
A formal notification that a buyer intends to buy a property. It is not legally enforceable.
A legal claim by one person on the property of another for security for payment of a debt or for services rendered.
An initial statement of personal and financial information required to apply for a loan.
Loan Application Fee
Fee charged by a lender to cover the initial costs of processing a loan application. The fee can include the cost of obtaining a property appraisal and a credit report.
A lender’s promise to advance a specific sum on specific terms.
Loan Origination Fee
Fee charged by a lender to cover administrative costs of processing a loan.
Loan-to-Value Ratio (LTV)
The percentage of the home’s price that is paid for by a mortgage.
Lock or Lock-In
A lender’s guarantee of an interest rate for a set period of time. The time period is usually that between loan application approval and loan closing. The borrower wants the lock to stay in effect until closing.
A way-below-market bid a buyer makes on a property or item.