Mortgage Glossary
There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.
L
Laches
Undue delay or negligence in asserting one's legal rights.
Land
Any part of the surface of the earth.
Land Banking
The business of buying land that is not currently needed for use.
Land Contract
A property installment selling agreement whereby the purchaser may occupy and use the land, but no deed is given by the seller until a specified part of the sales price has been paid.
Late Charge
The penalty a borrower must pay when a payment is made after the stated due date.
Late Payment
A payment made later than agreed upon in a credit contract and on which additional charges may be imposed.
Lease
A written contract between a property owner and a tenant that expresses the conditions under which the tenant may possess the real estate for a specified period of time and rent.
Lease-purchase Mortgage Loan
A creative financing option that allows homebuyers to lease a home with an option to buy. Each month's rent payment consists of principal, interest, taxes and insurance, plus an extra amount that is deposited into a savings account created for a down payment.
Leasehold Estate
A way of holding title to a property wherein the mortgagor does not actually own the property, but instead has a long-term recorded lease on it.
Legal Description
A legal property description that is sufficient to locate and identify the property without verbal testimony.
Lender
The bank, mortgage broker, or financial institution providing the loan funds to a borrower.
Lender Fees
Fees that are kept by the lender to cover some of their expenses and to meet their profitability goals. Typically fees such as origination fees, discount points, processing/administration fees, underwriting fees and document preparation fees are lender fees. This is the area of fees that you should compare very closely from lender to lender before making a decision.
Lessee
A person or company that signs a lease to get temporary use of property.
Lessor
A person or company that provides temporary use of property usually in return for periodic payment.
Liabilities
A person's financial obligations including both long-term and short-term debt, as well as any other amounts that are owed to others.