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Real Estate Terms - letter L

Real Estate Terms - letter L



Letter L

Late charge
The sentence a borrower must pay when a payment is made a stated number of days (typically 15) after the due date.

Leasehold estate
A way of holding title to a property wherein the mortgagor does not really own the property but rather has a recorded long-term rent on it.

Legal description
A property description, recognized by law, that is adequate to locate and recognize the property without oral testimony.

A person's financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.

Liability insurance
Insurance coverage that provides protection against claims alleging that a property owner's negligence or inappropriate action resulted in bodily wrong or property damage to another party.

A legal claim against a property that must be paid off when the property is sold.

Lifetime payment cap
For an adjustable-rate mortgage (ARM), a maximum on the amount that payments can increase or decrease over the life of the mortgage.

Line of credit
An accord by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a particular borrower.

Liquid asset
A cash asset or an asset that is simply converted into cash.

A sum of borrowed money (principal) that is normally repaid with interest.

Loan origination
The process by which a mortgage lender brings into existence a mortgage safe by real property.