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GLOSSARY 'L' |
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1. |
Land Contract:
An agreement to transfer title to a property once conditions of the contract have been fulfilled.
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2. |
Leasehold:
An estate or interest in real property held by a lease.
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3. |
Lease-Purchase:
Also referred to as a lease with option to buy. Acquiring ownership of real estate through gradual payments under which a lease is substituted for a mortgage obligation.
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4. |
Legal Description:
A property description recognized by law, that provides sufficient information to locate and identify the subject.
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5. |
Lender:
The entity that invests in or originates mortgage loans.
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6. |
LIBOR:
The London Interbrain Offered Rate. The rate at which banks in the foreign market lend dollars to one another.
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7. |
Lien:
A legal hold or claim on property as security for a debt or charge.
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8. |
Life of Loan Cap:
Also called Lifetime Cap. The maximum interest rate that can be charged during the life of the loan.
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9. |
Lis Pendens:
A notice recorded in the official records of a county to indicate that there is a pending suit affecting land within the jurisdiction.
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10. |
Loan Commitment:
A written promise to make a loan for a specified amount of specified terms.
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11. |
Loan Submission:
A package of documents regarding a specific property, delivered to a prospective lender to obtain financing.
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12. |
Loan-To-Value Ratio (LTV):
The relationship between the mortgage and the lesser of the price or appraised value of the property, expressed as a percentage.
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13. |
Lock:
The number of days, during which a lender will guarantee a rate.
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14. |
Lock-In:
The act of committing to a mortgage rate. Opposite of float.
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15. |
Loss Payee Clause:
The party to whom insurance proceeds are paid in the event of damage to property in which the loss payee has an insurable interest.
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