K

No K terms.

L   (Index)

Late Charge

Penalty paid by a borrower when a payment is made after the due date.

Lender

The bank, mortgage company, or mortgage broker offering the loan.

Lender Fees

Lender Fees are fees paid to the lender.

Lender Processing Fee

The lender processing fee covers the cost of analyzing your loan application and compiling and packaging the necessary supporting documentation to close your loan.

LIBOR (London Interbank Offered Rate)

The interest rate charged among banks in the foreign market for short-term loans to one another-a common index for ARM loans.

Lien

A legal claim by one person on the property of another for security for payment of a debt.

Lifetime (or Overall) Cap

Consumer safeguard that limits the amount the interest rate on an adjustable rate mortgage loan ( ARM) can change over the life of the loan. See Caps.

Loan Application

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 may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.

Loan Origination Fee

Fee charged by a lender to cover administrative costs of processing a loan.

Loan Term

The period of time between the closing date and the date of your last payment is paid.

Loan-to-Value Ratio (LTV)

The percentage of the loan amount to the appraised value (or the sales price, whichever is less) of the property.

Lock or Lock-In

A lender's guarantee of an interest rate for a set period of time-usually between loan application approval and loan closing. The lock-in protects you against rate increases during that time.