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Kicker |
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A term describing any benefit to a lender above ordinary fixed interest payments. It may be an equity position in a property or a percentage participation in the income stream. |
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Land Contract |
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Drawn between a buyer and a seller for the sale of property, in which ownership of the property is not transferred until all the payments have been made. |
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Late Charge |
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An additional charge a borrower is required to pay as penalty for failure to pay a regular installment when due. |
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Lease Hold Estate |
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Tenants right of possession for a specific period of time under a lease agreement. (Common in Hawaii.) |
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Lender |
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A financial institution, like a bank, that loans you money to buy a home, and expects you to pay the money back to them in a stated period of time, usually with interest. |
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Letter Of Credit |
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A letter authorizing a person or company to draw on a bank or stating that the bank will honor their credit up to the stated amount. |
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Lien |
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A claim upon a piece of property for the payment or satisfaction of a debt or obligation. Property is said to be encumbered by a lien and the lien must be removed to clear title. |
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Life Cap |
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With regard to an adjustable rate mortgage, a ceiling the note rate cannot exceed over the life of the loan. |
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Life Estate |
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The right to use, occupy, and own for the life of an individual. |
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Loan-To-Value Ratio (LTV) |
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The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. |
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Lock-In Period |
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That portion of the term of a mortgage loan during which the loan cannot be prepaid. |
