Mortgage Glossary - L

A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | Q | R | S | T | U | V | W
| Z

Land Contract - An agreement between the seller and the buyer where the title is withheld until a time where the required payments have been completed.

Leasehold Estate - A kind of real estate ownership where the lessor does not hold title to the property but has use of the property subject to the terms of the lease.

Legal Description - A method of geographically locating a piece or parcel of land, which is acceptable in a court of law.

LIBOR - London Inter Bank Offered Rate. LIBOR is the base interest rate paid on deposits between banks in the Eurodollar market.

Lien - A claim upon a piece of property for the payment or satisfaction of a debt or obligation.

Loan Committee - Generally the Underwriting process.

Loan Risk - The rate category assigned to the loan, which estimates the probable risk of delinquency and loss in the future.

Loan to Value Ratio (LTV)
A ratio determined by dividing the sales price or appraised value into the loan amount, expressed as a percentage. For example, with a sales price of $100,000 and a mortgage loan of $80,000, your loan to value ratio would be 80%. Loans with an LTV over 80% may require Private Mortgage Insurance, defined below.

Lock or Lock In
A commitment you obtain from a lender assuring you a particular interest rate or feature for a definite time period. Provides protection should interest rates rise between the time you apply for a loan, acquire loan approval and, subsequently, close the loan and receive the funds you have borrowed.