| late charge
The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date. lease
A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a specified period of time and rent. leasehold estate
A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it. legal description
A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony. liabilities
A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others. liability insurance
Insurance coverage that offers protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily injury or property damage to another party. lien
A legal claim against a property that must be paid off when the property is sold. lifetime payment cap
discount hotels in Naples For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage. lifetime rate cap
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. line of credit
An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower. liquid asset
A cash asset or an asset that is easily converted into cash. loan
A sum of borrowed money (principal) that is generally repaid with interest. loan origination
The process by which a mortgage lender brings into existence a mortgage secured by real property. loan servicing
All the steps taken to maintain a secure position of the lender from the time loan is originated until the last payment is made. The process includes recording payments, analyzing escrow, preparing statements and handling collections. loan-to-value (LTV) percentage
Sheraton-Hotel Marseille The relationship between the principal balance of the mortgage and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has a LTV percentage of 80 percent. lock-in
A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time. The lock-in also usually specifies the number of points to be paid at closing. lock-in period
The time period during which the lender has guaranteed an interest rate to a borrower. | 
