| LoanFactz Information Site | Home | Definitions | Mortgage Calculators | Bookmark | Advertise | Site Map |
Loanfactz DefinitionsGlossary of Legal Terms, Loan Terms and Home Construction, Repair and Maintenance Definitions. Some words have more than one meaning. Only those meanings relating to this site will be used.
Late Payment When a person fails to pay their payment by the due date. Lease A contract agreement between the lessee (you) and the lessor (the leasing company) for temporary use of a vehicle, property, an apartment, machinery, or personal property, etc., for an agreed period of time and for a specified payment. In the case of a vehicle, the lessee (you) pays to the leasing company monthly payments without actually buying the vehicle. The company leasing the vehicle continues to own the vehicle. The vehicle is returned to the leasing company when the lease expires unless the lessee (you) decides to buy the vehicle, if the contract allows for that option. In the case of a rental agreement between a property owner and a tenant, the tenant (you) signs a contract for use of the property for an agreed period of time and a specified payment of rent. Example: The tenant (you) signs a contract to lease an apartment from a landlord (owner of the apartment) for 12 months at 850 dollars a month. Lease Purchase An option for low to moderate-income home buyers 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. Lemon Law State laws that provide remedies to consumers for vehicles that repeatedly fail to meet certain standards of quality and performance. Lemon laws vary by state and may not cover leased vehicles. Lender The lender may be a bank, finance company, credit union or other financial institution or a government agency that provides loan funds to the borrower (you). Lessee The person who signs a lease. Lessor The leasing company or lender or individual who leases property to another, such as a car dealer, business, manufacturer, financial institution or landlord. Liabilities Your debts and other monetary obligations. LIBOR LIBOR means London Interbank Offered Rate, the interest rate that major international banks in London charge to lend dollars to one another. Lien A legal claim or charge on property for payment of a debt that must be paid when the property is sold. It is the right of the lender to take the title to your property if you do not make the payments due on the loan. Lifetime Cap The limit on interest rate changes throughout a loan term. Line of Credit A certain amount of money, for a certain amount of time, that you can draw on as you need it. As you partially (or fully) pay down the outstanding balance (amount owed on the loan), you can borrow against the line of credit again without having to re-apply for a new loan. Also known as a credit line or revolving credit. List Price List price is another name for manufacturer's suggested retail price (MSRP). Also called sticker price. This is the sticker you see attached to a new vehicle's window. Loan Money borrowed that must be repaid. Loan Fraud Purposely giving incorrect information on a loan application in order to better qualify for a loan. This may result in civil liability or criminal penalties. Read more about Predatory Lending Loan Origination Fees The fee paid to your mortgage lender for processing the mortgage application. This fee is usually in the form of points. One point equals 1% of the mortgage amount. Loan to Value (LTV) Ratio A percentage calculated by dividing the amount borrowed by either the purchase price or appraised value of the home, whichever is the lower of the two amounts. A 75,000 dollar loan on a property appraised at 100,000 dollars is a 75% loan to value ratio, example, 75,000 dollar loan amount divided by the 100,000 dollar price or appraised value. The higher the loan to value (LTV) ratio, the less cash a borrower is required to pay as a down payment, which puts lenders more at risk, also can carry a higher interest rate, have mortgage insurance added to the loan, and may be harder for the borrower to qualify for. Lock In A written agreement guaranteeing a specific interest rate if the loan is closed within a specific time period. Also, there is usually a specific number of points to be paid at closing. London Interbank Offered Rate (LIBOR) The interest rate that major international banks in London charge to lend dollars to one another. 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. Low Down Payment Feature A feature of a mortgage, usually a fixed rate mortgage that helps you buy a home with as little as a 3% down payment. Low Income Housing Housing intended to be occupied by low or moderate income people that are eligible for special tax credits under the 1986 tax act. |
SCAMS & FRAUD
Federal Laws Organizations Fannie MaeFreddie Mac Ginnie Mae Nellie Mae Sallie Mae Consumer Info Consumer TipsCredit Bureau Credit Insurance Credit Report Directory of Federal Agencies Federal Trade Commission (FTC) Identity Theft Opt Out Predatory Lending Repair Your Bad Credit Truth in Lending Act Borrowers Beware Miscellaneous Private Mortgage Insurance (PMI)Prepayment Penalty Copyright & |
| Loanfactz.com Supporters | Home | Definitions | Mortgage Calculators | Bookmark | Advertise | Site Map |
| © Loanfactz.com Copyright 2004/2011 All Rights Reserved The information on this site is not a substitute for professional advice. Always consult a qualified professional about legal information. |