Glossary

A-E    F-J    K-O    P-T    U-Z    

K-O


Late Charge Lock or Lock-In Mortgage Insurance
Liability Lock Period Mortgagee
Lien Manufactured Housing Mortgagor
Lifetime Payment Cap Margin Net Income
Lifetime Rate Cap Minimum Payments Note
Loan-to-Value Ratio (LTV) Mortgage Origination Fee

Late Charge
Penalty paid by the consumer when a payment is made after the scheduled due date, or after the grace period.
Back to the Top

Liability
A person's debts or financial obligations. Liabilities include long-term and short-term debt.
Back to the Top

Lien
A legal claim against a property, either voluntary or involuntary that is required to be paid no later then when the property is sold.
Back to the Top

Lifetime Payment Cap
For an Adjustable Rate Mortgage (ARM) loan, a limit on the amount that payments can increase or decrease over the life of the mortgage.
Back to the Top

Lifetime Rate Cap
For an Adjustable Rate Mortgage (ARM) loan, a limit on the amount that the interest rate can increase or decrease over the life of the loan.
Back to the Top

Loan-to-Value Ratio (LTV)
The ratio, expressed as a percentage, between the mortgage loan amount and the lesser of the estimated property value or appraised value. To calculate the LTV, the loan amount is divided by the lesser of the estimated property value or appraised value.
Back to the Top

Lock or Lock-In
A written agreement provided by the lender that guarantees the borrower a specified interest rate and points provided the loan is closed within a specified time period.
Back to the Top

Lock Period
The amount of time a lender will guarantee a locked loan's interest rate. Lock periods that are generally available include: 30, 45, 60 or 90 days. The loan closing/settlement must occur prior to the expiration of the lock period.
Back to the Top

Manufactured Housing
Factory-built or prefabricated housing.
Back to the Top

Margin
For an Adjustable Rate Mortgage (ARM) Loan, the amount that is added to the interest rate index to obtain the interest rate at each scheduled adjustment period.
Back to the Top

Minimum Payments
The minimum amount that is required to be paid monthly on an account.
Back to the Top

Mortgage
A written document evidencing the lien on a property taken by a lender as security for the repayment of a loan. The terms of the loan are contained in the note.
Back to the Top

Mortgage Insurance
Also referred to as private mortgage insurance. Insurance provided the lender against loss on a mortgage in the event of borrower default. In most cases, the borrower pays the premiums.
Back to the Top

Mortgagee
How the lender is referred to in a mortgage agreement.
Back to the Top

Mortgagor
How the borrower is referred to in a mortgage agreement.
Back to the Top

Net Income
The total income after taxes and/or expenses are deducted.
Back to the Top

Note
A document that evidence a debt and a promise to repay. A mortgage loan transaction always includes both a note evidence the debt, and a mortgage evidencing the lien on the property.
Back to the Top

Origination Fee
A fee charged by a lender for the origination of a mortgage loan. Origination fees are expressed as a percentage of the loan amount.
Back to the Top