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L

LALLY COLUMN: A concrete filled steel pipe used to support beams.

LATE CHARGE: An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.

LATENT DEFECTS: Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.

LEASE: A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.

LEASEHOLD ESTATE: A type of property ''ownership'' where the buyer actually has a long-term lease on the property.

LEASE OPTION: A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.

LEGAL DESCRIPTION: The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.

LENDER: The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.

LIABILITIES: 
A person's outstanding debt obligations.

LIABILITY INSURANCE: Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another party.

LIEN: Any claim against a piece of property resulting from a debt or other obligation.

LIFE CAP: A limit on how far the interest rate can move for an Adjustable Rate Mortgage.

LIKE-KIND PROPERTY: Any property which is substantially similar to another property.

LINE OF CREDIT: An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.

LIQUID ASSET: Any asset which can be quickly converted into cash at little or no cost, or cash itself.

LOAN: 
Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.

LOAN OFFICER 
A person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.

LOAN ORIGINATION: How a lender refers to the process of writing new loans.

LOAN SERVICING: The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments to.

LOAN-TO-VALUE RATIO (LTV): The comparison of the amount owed on a mortgaged property to its fair market value.

LOCK-IN: 
An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.

LOCK-IN PERIOD: The amount of time the lender has guaranteed an interest rate to a borrower.



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