House-Buying 101

Mortgage Terminology

L



Late Charge
The penalty a borrower must pay when a payment is made a stated number of days after the due date.

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.

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
A lender's guarantee that the mortgage rate quoted will be good for a specific number of days from the day of application.