Real Estate Glossary – L
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Many of the terms used during real estate transactions may be new or unfamiliar. WashMetroHomes.com has provided the real estate dictionary to assist you with better understating the terms of buying and selling real estate and the terms contained in real estate contracts and/or forms.
In light of this, WashMetroHomes.com is providing this real estate dictionary with many terms common with buying and selling real estate. Each real estate transaction is unique and the terms are all different. If you are unclear about any specific area or meaning in a real estate contract, see the help of a real estate professional such as a Realtor, Mortgage Specialist, or a competent and qualified Attorney.
Great care and research was undertaken to provide accurate definitions and explanations for the real estate terms and words in our real estate dictionary. No one real estate dictionary can be 100% accurate in all jurisdictions. The definitions provided by WashMetroHomes.com in the real estate dictionary are for general purposes only and should not be used for legal purposes. Jennifer V-E Johnson and WashMetroHomes.com disclaim any responsibility for any liability, risk or loss that may be incurred or claimed incurred as a consequence of using this information.
WashMetroHomes.com hopes you benefit from using our real estate dictionary. late charge lease leasehold estate
lease-purchase mortgage loan legal description liabilities liability insurance lien lifetime payment cap lifetime rate cap line of credit liquid asset loan loan commitment loan origination loan-to-value (LTV) percentage lock-in lock-in period
The penalty a borrower must pay when a payment is made a stated number of days (usually 15) after the due date.
A written agreement between the property owner and a tenant that stipulates the conditions under which the tenant may possess the real estate for a specified period of time and rent.
A way of holding title to a property wherein the mortgagor does not actually own the property but rather has a recorded long-term lease on it.
An alternative financing option that allows low- and moderate-income home buyers to lease a home from a nonprofit organization with an option to buy. Each month’s rent payment consists of principal, interest, taxes and insurance (PITI) payments on the first mortgage plus an extra amount that is earmarked for deposit to a savings account in which money for a downpayment will accumulate.
A property description, recognized by law, that is sufficient to locate and identify the property without oral testimony.
A person’s financial obligations. Liabilities include long-term and short-term debt, as well as any other amounts that are owed to others.
Insurance coverage that offers protection against claims alleging that a property owner’s negligence or inappropriate action resulted in bodily injury or property damage to another party.
A legal claim against a property that must be paid off when the property is sold.
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease over the life of the mortgage. See cap.
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease over the life of the loan. See cap, interest rate ceiling and interest rate floor.
An agreement by a commercial bank or other financial institution to extend credit up to a certain amount for a certain time to a specified borrower. See home equity line of credit.
A cash asset or an asset that is easily converted into cash.
A sum of borrowed money (principal) that is generally repaid with interest.
See commitment letter.
The process by which a mortgage lender brings into existence a mortgage secured by real property.
The relationship between the principal balance of the mortgage and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has a LTV percentage of 80 percent.
A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within a set period of time. The lock-in also usually specifies the number of points to be paid at closing.
The time period during which the lender has guaranteed an interest rate to a borrower. See lock-in.
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Courtesy of Jennifer V-E Johnson, Reston Expert and www.WashMetroHomes.com
