Arbor Financial Group Marketing Engines, Inc.

Glossary of Terms

Mortgage. Real Estate & Insurance

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Landmark
A Landmark is a designation given to a building which places it under protection for the purpose of preservation.
LAND BURDEN
An agreement granting limited permission to use the property. Same as SERVITUDE.
LAND CONTRACT
An installment contract for sale with the buyer receiving equitable title and the seller retaining legal title.
Late Charge
Additional charge that a borrower is required to pay as a penalty for failing to pay a regular installment when due.
Lease
Written document containing the conditions under which the possession and use of real and/or personal property are given by the owner to another for a stated period and for a stated consideration.
LEASEHOLD
A tenant's right to occupy real estate during the term of the lease. This is a personal property interest.
Leasehold Estate
Method of holding title to a property in which the mortgagor does not actually own the property but rather has a recorded long-term lease on it.
LEASE OPTION TO PURCHASE
A lease containing a clause that allows the tenant the right to purchase the property under specified conditions.
LEGAL DESCRIPTION
A method of geographically identifying a parcel of land that is acceptable in a court of law.
LEGAL TITLE
The manner in which property ownership is recorded with the county in which the property is located . See also VESTING.
Liability Insurance
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.
LIBOR
An acronym for London Interbank Offered Rate, one of several published indices. It's the average rate of interest that major London banks charge as they lend to one another.
Lien
Legal hold or claim of one person on the property of another as security for a debt or charge. The right given by law to satisfy debt.
LIEN POSITION
The order in which liens will be repaid when the property is transferred to a new owner.
LIFETIME CAP
This is the cap that limits how high an interest rate can increase over the life of an adjustable-rate mortgage loan . Example: Start rate + 6% = lifetime Cap
Life Estate
Freehold estate giving a beneficiary all property rights, except the right to sell. The estate is terminated upon the death of the beneficiary.
Limited Partnership
Partnership that consists of one or more general partners who are fully liable, and one or more limited partners who are liable only for the amount of their investment.
LINES OF CREDIT
A type of mortgage loan from which borrowers can write a check or draw funds. Some lines of credit are also balloon loans. Usually the borrower is given 5 to 10 years to use the line of credit. After this period, many lines of credit require the borrower to pay the loan in full. Others may require the loan to be paid in full over the next 10 to 15 years.
Line Item Budget/Cost Breakdown
A detailed listing of the actual costs of the construction for an OTC loan. This includes the cost of labor, all building materials, and any other costs associated with construction.
LIQUID ASSETS
Cash or assets, such as checking/savings accounts, stocks/bonds, that are immediately convertible to cash.
Liquidity
Cash position based on assets that can readily be converted to cash.
Lis Pendens
Latin phrase meaning a notice recorded in the official records of a county to indicate that there is a pending suit affecting the lands within the jurisdiction.
Listing
Written authorization to sell or lease real estate. Or a Listing is the term used by brokers for an apartment for sale after it has been "listed" by the broker in its system.
Listing Agent
A Listing Agent, also known as the Exclusive Broker, is the broker who represents the interests of the seller.
LOAN AMOUNT
The amount of money originally lent to a borrower.
LOAN APPLICATION (1003)
The form potential customers must complete to apply for a home loan. This application is commonly referred to as "the 1003" and is produced by the Federal government. See also 1003.
Loan-to-Value (LTV) Percentage
Relationship between the unpaid principal balance of the mortgage and the property's appraised value (or sales price if it is lower). This ratio is expressed to a potential purchaser of property in terms of the percentage a lending institution is willing to finance.
LOAN RISK
The risk category assigned to a loan, which estimates the probable risk of delinquency and loss in the future.
LOAN TERM
The loan term is the period of time over which the loan will be paid. First mortgage loans typically have terms of 30, 20 or 15 years.
LOAN TO VALUE RATIO (LTV)
The loan amount in relationship to the appraised value or selling price expressed as a percentage.
Loft Buildings
With large open spaces and high ceilings, loft buildings are typically found in former commercial manufacturing and office districts. As a result, they are more numerous in downtown Manhattan and parts of Brooklyn, although many new "Loft-style" apartments are being developed city-wide.
Loft Style Condominium
Condominium project with units on one or more floors of old warehouse or factory-type buildings in urban areas.
"Look-Back" Period
Date on which the index value that will be used to establish the next interest rate change for an ARM is determined. It is a specified number of days (usually 30 to 45) before the interest rate change date.
LOSS PAYABLE CLAUSE
A clause in an insurance policy listing the priority of claims in the event of destruction of the property insured. Generally, a mortgage or beneficiary under a deed of trust is the party appearing in the clause, being paid up to the amount owing under the mortgage or deed of trust before the owner is paid.
Lot
Measured parcel of land having fixed boundaries as shown on the recorded plat.
Low-Rise/Tenement Buildings
Among the most affordable housing options in New York, low-rises are five or six-story buildings, usually without elevators or doormen, and with few, if any, amenities.
Luxury High-Rise Buildings
More recent in vintage, today's modern towers offer expansive views from very high floors, with floor-to-ceiling glass and state-of-the-art systems and amenities.