Mortgage Glossary – L

Land — Land is any part of the earth not covered by water. In real estate, this includes any physical structure above or below the land that it occupies.

Land Contract — A legal contract or agreement is that the purchaser agrees to pay the seller stipulated amounts at specified intervals until the purchased price is paid; the seller has legal title of the land as security for the payments.

Land Title – A legal document proving ownership of a property.

Late Charge — A fee charged to the borrower for having late payments.

Late Payment — A fee paid by the borrower for making late payment(s). This amount is usually predetermined in a contract.

Leasehold – A piece of land that is leased to an individual or organization for a pre determined time period. Leaseholds are generally written for 100 years or more.

Legal Description – The precise address of a property as determined by municipal government. Legal descriptions include Lot and Plan.

Lender – A financial institution that lends money in order to gain interest.

Liabilities – owed debts that legally obligated to the lender.

Lien – A legal claim of a creditor on a property owned by another party.

Line of Credit – A pre determined loan amount that allows clients to draw on funds and repay the debt with out penalty or security.

Loan Application – A document filled out by applicants who want to borrow money.

Loan to Value or LTV- The ratio determined by the principal amount of a loan divided by the purchase price.

Low-documentation Loan – A loan that requires very little documentation in order to qualify.

Low-down-payment Loan – A mortgage in which the borrower can put down a very small down payment in order to be approved for a mortgage.