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L - Definitions - Mortgage Dictionary
Look up any mortgage term or condition and immediately know
the definition of that mortgage program or word.
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Lien
An encumbrance against property for money due, either voluntary or involuntary.
Lender
The bank, mortgage company, or mortgage broker offering the loan.
LIBOR
LIBOR stands for London Inter-Bank Offered Rate. This is a favorable interest rate offered for U.S. dollar deposits between a group of London banks. There are several different LIBOR rates, defined by the maturity of their deposit. The LIBOR is an international index that follows world economic conditions. LIBOR-indexed ARMs offer borrowers aggressive initial rates and have proven to be competitive with popular ARM indexes like the Treasury bill.
Lifetime cap
A provision of an ARM that limits the highest rate that can occur over the life of the loan.
Loan to value ratio
The ratio of the amount of your loan to the appraised value. The LTV will affect programs available to the borrower and generally, the lower the LTV the more favorable the terms of the programs offered by lenders.
Lock period
The amount of time that a lender will guarantee a loan's interest rate. Once you've locked in the interest rate on a loan, the lender will guarantee that rate for a certain period of time, usually for 30, 45 or 60 days.
Lock-in
A written agreement guaranteeing the home buyer a specified interest rate provided the loan is closed within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.
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