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Land Contract
An agreement between the seller and the buyer where the title is withheld until a time where the required payments have been completed.
Leasehold Estate
A kind of real estate ownership where the lessor does not hold title to the property but has use of the property subject to the terms of the lease.
Legal Description
A method of geographically locating a piece or parcel of land, which is acceptable in a court of law.
LIBOR London InterBank Offered Rate.
LIBOR is the base interest rate paid on deposits between banks in the Eurodollar market.
Lien
An encumbrance against property for money due, either voluntary or involuntary.
Lifetime cap
A provision of an ARM that limits the highest rate that can occur over the life of the loan.
Loan to value ratio (LTV)
The ratio of the amount of your loan to the appraised value of the home. The LTV will affect programs available to the borrower and generally, the lower the LTV the more favorable the terms of the programs offered by lenders.
Loan Committee
Generally the Underwriting process.
Loan Risk
The rate category assigned to the loan, which estimates the probable risk of delinquency and loss in the future.
Loan-To-Value Ratio
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. (LTV)
Lock-in
A written agreement guaranteeing the home buyer a specified interest rate provided the loan is closed within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.
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