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Mortgage Loan Glossary - 'L'

Use the alphabet letters below to navigate to the words in this glossary.

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

- L -

Lender

The creditor making the loan.
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Lien

A legal claim against a property to secure a debt that must be paid off when the property is sold. A mortgage is a voluntary lien, where the buyer uses the home as security that the loan will be repaid. Creditors, such as the IRS, can have a lien put on a home without the homeowner's permission. A first mortgage takes precedence over any other liens.
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Loan

A sum of borrowed money (principal) that is generally repaid with interest.
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Loan Estimate

An estimate of all loan and closing costs a borrower will be required to pay. It also summarizes a mortgage loan's complete terms, projected payments and any additional application disclosures. The lender must provide the Loan Estimate to the prospective borrower within 3 business days of receiving the mortgage loan application.
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Loan-to-value ratio (LTV)

The percentage calculated by dividing the mortgage loan amount by the property's appraised value or selling price, whichever is less. For refinances, LTV compares how much a person plans to borrow versus the property's appraised value. For example, a 90% LTV loan means 90% of the home's price will be borrowed, and there will be a 10% down payment (or equity if refinancing).
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Lock Period

Please see Rate Commitment Option.
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