Lease

This is a written contract made by a property owner and a tenant (leasee) that lists the conditions of occupancy and the payment to be made by the tenant for a specific time period.

Leasehold Estate

A form of title for a property where the borrower (mortgagor) is not the owner, but does have a lease that is recorded for legal purposes.

Lease Option

This is a contract that allows a buyer to lease real estate with an option to buy. The monthly rent can include additional payment that accrues as payment toward a down payment. The sale price is specified at the time the contract is signed.

Legal Description

This is a description of property that is recognized by courts, that describes the location and identifies a specific property.

Lender

This may refer to a lending institution that loans funds to a borrower or and person who works for a lending institution.

Liabilities

These represent an individuals financial obligations and can include short term debts, outstanding long term debt, plus any amount that an individual might owe to other individuals, institutions, or the government.

Liability Insurance

This is insurance that protects a property owner when there is a claim of negligence or action resulting in injury to a person or property. This insurance is typically included in a property owner's homeowner policy.

Lien

This is a legally binding claim against a person's property that is required to be paid off when the property is sold. A first trust deed and real estate mortgage are considered to be liens.

Life Cap

This is the limitation for an increase or decrease in an adjustable rate mortgage over throughout the span of the mortgage.

Line Of Credit

This is an agreement from a financial institution to give credit to up to a specified dollar amount, and for a specified time, to a borrower.

Liquid Asset

This is an asset that can be easily converted to cash, or it is a cash asset.

Loan

This the principal amount (money) borrowed by individual, business, or institution, and is often repaid with an interest paid at the same time a payment is made toward repaying the principal.

Loan Officer

An individual who works as representative of lending institution who work with borrowers to secure loans from the lending institution.

Loan Origination

This refers to the procedures involved in lending funds to a borrower.

Loan Servicing

This refers to the company accepting payment and process a real estate loan. In addition to processing payments this company manages the escrow account, send statements, collects any delinquent loans, makes certain that property taxes and insurance are paid, and manages assumptions and pay off amounts.

Loan To Value ( LTV )

This is percentage calculated from the amount of a real estate loan compared to the lower value between the appraisal value of a property or its sale price.

Lock In

This occurs when a lending institution guarantees a set interest rate for a mortgage for a specified period of time.

Lock In Period

This is the time period a lending institution guarantees an interest rate for a real estate loan, to a specific borrower.