L
- Lally Column
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A concrete filled steel pipe used to support beams.
- Late Charge
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An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.
- Latent Defects
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Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.
- Lease
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A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.
- Lease Option
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A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.
- Leasehold Estate
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A type of property ''ownership'' where the buyer actually has a long-term lease on the property.
- Legal Description
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The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.
- Lender
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The person or entity that loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.
- Liabilities
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A person's outstanding debt obligations.
- Liability Insurance
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Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another party.
- Lien
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Any claim against a piece of property resulting from a debt or other obligation.
- Life Cap
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A limit on how far the interest rate can move for an Adjustable Rate Mortgage.
- Like-Kind Property
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Any property that is substantially similar to another property.
- Line of Credit
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An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.
- Liquid Asset
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Any assets that can be quickly converted into cash at little or no cost, or cash itself.
- Loan
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Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.
- Loan Officer
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A person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.
- Loan Origination
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How a lender refers to the process of writing new loans.
- Loan Servicing
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The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc., typically carried out by the company you make payments to.
- Loan-to-Value Ratio (LTV)
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The comparison of the amount owed on a mortgaged property to its fair market value.
- Lock-In
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An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.
- Lock-In Period
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The amount of time the lender has guaranteed an interest rate to a borrower.