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"Your Education Center" |
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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-Purchase Mortgage Loan
An alternative financing option that allows low and moderate
income home buyers to lease a home with an option to buy. Each
month's rent payment consists of principal, interest, taxes and
insurance (PITI) payments on the first mortgage plus an extra
amount that accumulates in a savings account for a down payment.
Liabilities
A person's financial obligations. Liabilities include long
term and short term debt.
Lien
A claim upon a piece of property for the payment or
satisfaction of a debt or obligation.
Lifetime Payment Cap
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. See cap.
Loan
A sum of borrowed money (principal) that is generally repaid
with interest.
Loan to Value Ratio
The relationship between the amount of the mortgage loan and
the appraised value of the property expressed as a percentage.
Lock
Lender's guarantee that the mortgage rate quoted will be good
for a specific number of days from day of application.
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