Lease
purchase: assists low- to moderate-income homebuyers in purchasing
a home by allowing them to lease a home with an option to buy; the
rent payment is made up of the monthly rental payment plus an additional
amount that is credited to an account for use as a down payment.
Lien:
a legal claim against property that must be satisfied When the
property is sold
Loan: money borrowed that is usually repaid with interest.
Loan
fraud: purposely giving incorrect information on a loan application
in order to better qualify for a loan; may result in civil liability
or criminal penalties.
Loan-to-value
(LTV) ratio.- a percentage calculated by dividing the amount
borrowed by the price or appraised value of the home to be purchased;
the higher the LTV, the less cash a borrower is required to pay
as down payment.
Lock-in:
since interest rates can change frequently, many lenders offer
an interest rate lock-in that guarantees a specific interest rate
if the loan is closed within a specific time.
Loss
mitigation: a process to avoid foreclosure; the lender tries
to help a borrower who has been unable to make loan payments and
is in danger of defaulting on his or her loan
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