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Land Contract - Loan Commitment

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Loan Consolidation - LTV

Loan Consolidation
Loan Origination Fee
Loan Processing Fee
Loan Term
Loan-to-Value Ratio
Lock
Lock-and-Float
Long Term Capital Gain
Low Documentation Loan
Lowball Offer
LTV

Loan Consolidation

Loan Origination Fee
A fee charged by the loan agent or lender to underwrite a loan. The fee is expressed in points where 1 point equals 1% of the loan.

Loan Processing Fee
A fee charged by the loan agent or lender for the work necessary to accept and to complete a loan.

Loan Term
A certain period of time indicated on on agreement for a borrower to repay the entire loan.

Loan-to-Value Ratio (LTV)
Calculates the percentage of the amount financed to the value of the property. For example: An individual buys a home worth $300,000. He or she finances $150,000. The LTV is 50%.

Lock
A guarantee that the interest rate quoted will not change for a certain period of time -- standard lengths of time include: 15 days, 30 days, 45 days, 60 days. Extensions on these locks are allowed if necessary but charge additional fees.

Lock-and-Float
A type of interest rate program where lenders allow borrowers to lock the rate at current times and are willing to decrease the interest rate if market conditions improve before the closing of the transaction. The interest rate generally has to improve significantly in order for the adjustment to take place.

Long Term Capital Gain
A profit or loss from a sale of an asset such as property held for more than twelve (12) months.

Low Documentation Loan
(aka stated loan) A type of mortgage that requires less verification of income, assets, or both. These types of loans are mainly used for self-employed borrowers or those whose funds cannot be traced through traditional means. These loans generally have higher interest rates than full documentation loans.

Lowball Offer
An offer submitted by a buyer that is much lower than the asking price.

LTV
An abbreviation for loan-to-value ratio.