Mortgage Glossary

Jumbo Loan

A jumbo loan is a loan that exceeds the statutory size limit eligible for purchase or securitization by federal agencies.

Lease-Purchase

This is a method of purchasing property by making gradual payments over the required rent for a set period. At the end of this period, the renter uses a mortgage loan to finance the purchase of the property.

Lender

A lender is a financial institution or agency that loans you money.

Lien

A lien is a legal hold or claim of a creditor on the property of another as security for a debt. Liens are always against property, usually real property.

Loan Origination Fee

This is a fee charged by lenders to prepare documents, make credit checks, inspect, and sometimes appraise property. It is usually stated as a percentage of the face value of the loan.

Loan Servicing

Loan servicing, simply stated, is the management of a loan. It includes collection of loan payments, management of escrow accounts, and disbursements from escrow accounts.

Loan-to-Value Ratio (LTV)

LTV is the ratio of the amount borrowed compared to the appraised value or sales price of real property. LTVs are expressed as percentages.

Lock-In Period

The number of days during which a lender guarantees a borrower a specific interest rate and terms on a mortgage.