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Last
Updated -
The Last Update column on a quotes
results table tells you when the information
was last provided by the lender to
our site. We always place new listings
at the top of each table so that you,
the borrower, may have immediate access
to the most timely information. Times
provided are all Eastern Standard
Time. top
of page
lease -
A written agreement between a property
owner and a tenant that stipulates
the payment and conditions under which
the tenant may possess the real estate
for a specified period of time. top
of page
Leasehold Estate -
An estate for a fixed length of time,
established when a landlord gives
up possession of real estate to a
tenant, giving the tenant an equitable
interest in the property, as defined
by lease terms. top
of page
Lease Option -
A rental agreement indicating a tenant's
option to purchase a property. Monthly
payments consists not only of rent,
but an overage that can be applied
towards a down payment on an already
established amount. top
of page
Lender -
The bank, mortgage company, or mortgage
broker offering the loan. Many institutions
only "originate" loans and
then resell the obligation to third
parties. top
of page
Leverage -
Using someone else's money for the
purchase of property. top
of page
Liability Insurance -
Insurance that protects property owners
against claims that alleges negligence
or inappropriate action that resulted
in bodily injury or property damage
to another party. top
of page
LIBOR -
The London Interbank Offered Rate
Index (LIBOR) is an average of the
interest rates that major international
banks charge each other to borrow
U.S. dollars in the London money market.
Like the U.S. treasury the CD indexes,
LIBOR tends to move and adjust quite
rapidly to changes in interest rates.
top
of page
Lien -
A legal claim by one party against
the property of another as security
for a debt. Must be paid off when
property is sold. A mortgage or a
first trust deed is a lien. top
of page
Life of Loan Cap -
The maximum interest rate that can
be charged during the life of the
loan. Also called Lifetime Cap. This
value is often expressed as an increment
above the initial loan rate. For example,
an adjustable rate loan with an initial
rate of 7.25% and a 6% lifetime cap
will never adjust above a rate of
13.25% (7.25+6.0). top
of page
Loan -
The principal, or amount of total
borrowed money, that is repaid with
interest. top
of page
Loan Amount -
The amount of money that you intend
on borrowing from a financial institution
for the purchase of your home. Subtracting
the down payment from the purchase
price of the home will provide you
with the loan amount. top
of page
Loan Officer -
An intermediary between lending institutions
and borrowers, loan officers solicit
loans, represent creditors to borrowers,
and represent borrowers to creditors.
top
of page
Loan Origination -
What the process of obtaining new
loans is called. top
of page
Loan Servicing -
A service performed by a lender to
protect a mortgage investment, including
collecting monthly payments from borrowers
and dealing with delinquencies. top
of page
Loan-To-Value Ratio - -
The relationship between the amount
of the mortgage loan and the appraised
value of the property expressed as
a percentage. A LTV ratio of 90 means
that a borrower is borrowing 90% of
the value of the property and paying
10% as a down payment. For purchases,
the value of the property is assumed
to be the purchase price, for refinances
the value is determined by an appraisal.
top
of page
Lock noun -
The period, expressed in days, during
which a lender will guarantee a rate.
Some lenders will lock rates at the
time of application while others will
allow the borrower to lock the rate
after the application is taken. Request
information from your lender regarding
lock procedures. top
of page
Lock verb -
The act of committing to a mortgage
rate. This action, taken by a borrower
some time between the application
and the closing dates, is sometimes
accompanied by a payment by the borrower
to the lender. top
of page
Lock-in Clause -
Clause in a loan agreement that states
that the borrower cannot repay a loan
prior to a specified date. top
of page
M
Margin -
The amount a lender adds to the quoted
index rate for an adjustable rate
loan to determine the new interest
rate. top
of page
Maturity -
The "Due Date" of a loan.
top
of page
Merged Credit Report -
A credit report that reports data
from two or more major credit repositories.
top
of page
Minimum Credit -
This field on the table refers to
the minimum credit rating a borrower
must have in order to qualify for
the listed loan. top
of page
Modification -
Any change to the original terms of
a mortgage. top
of page
Monthly Housing Expense -
Total principal, interest, taxes,
and insurance paid by the borrower
on a monthly basis. Used with gross
income to determine affordability.
top
of page
Mortgage -
A legal document that pledges property
to a creditor for the repayment of
the loan, and is the term used to
describe the loan itself. Some states
use the term First Trust Deeds to
refer to mortgage loans. top
of page
Mortgagee -
The lender in a mortgage agreement.
top
of page
Mortgage Banker -
A financial intermediary that originates
or funds loans, collects payments,
inspects the property, and forecloses
if necessary. The main difference
between a mortgage banker and a loan
officer is a banker funds their own
loans and sell them on the secondary
market, usually to Fannie Mae, Freddie
Mac, or Ginny Mae. top
of page
Mortgage Broker -
A mortgage company that originates
loans, joining the borrower and lender
for a real estate loan, earning a
placement fee. top
of page
Mortgage Constant -
The factor used for rapid computation
of the annual payment needed to amortize
a loan. top
of page
Mortgage Insurance -
Insurance that covers the lender against
losses incurred as a result of a default
on a home loan. This is usually required
on all loans that have a loan-to-value
higher than eighty percent. Mortgages
that have an 80% LTV that do not require
mortgage insurance have higher interest
rates. The lenders then pay the mortgage
insurance themselves. In addition,
FHA loans and some first-time homebuyer
programs require mortgage insurance
regardless of the loan-to-value. top
of page
Mortgagor -
The borrower in a mortgage agreement.
top
of page
Multidwelling Units -
Properties that provide separate housing
units for more than one family, although
only a single mortgage is secured.
top
of page
N
Negative Amortization -
Essentially occurs when a borrower
makes a minimum payment that may not
cover the interest that is due. Loan
balance then increases as a result.
top
of page
Net Effective Income -
Gross income less federal income tax.
top
of page
No Cash-out Refinance -
A refinance transaction that is not
intended to put cash in the hand of
the borrower, but instead calculates
a new balance to cover the balance
due on a current loan and any costs
with obtaining a new mortgage. top
of page
No-Cost Loan -
A no-cost loan can either be: 1) a
loan that has no "lender costs"
associated with it or, 2) a loan that
also covers purchases or refinancing
costs, which may be incurred in buying
a home, obtaining and/or refinancing
a loan, but are not directly charged
by the lender. The interest rate on
this type of loan is higher. top
of page
Note -
A legal document that obligates a
borrower to repay a mortgage loan
at a stated interest rate during a
specified period of time. top
of page
Note Rate -
The stated interest rate on a mortgage
note. top
of page
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