Can you talk the walk?
Real estate terminology will have you walking and talking like the top professionals.
Real Estate Guru Review's guide includes all the words for a full understanding of the financial language used by investors.
Late Charge: This is a penalty which is imposed if a borrow fails to make a payment on time.
Lease-Purchase Option: This is an option that is used by sellers when they are renting a property to a client who does have the option to buy the property within a set amount of time. These rental payments are generally used to pay left over costs.
Liabilities: These are the finance elements that belong to a specified person.
Liability Insurance: This is a type of coverage insurance that is used to protect the owners of property against any claims of personal injuries, negligence or property damage to another party.
LIBOR-Index: This index can calculate any changes in the rate of interest for ARMs.
Lien: This is either a claim or a charge on a property for the payment of any debt. With an existing mortgage the lender has the legal right to take the title to the property in question if the mortgage payments are not made.
Lifetime Cap: This is the limit that is in place on a value of the rate of interest or timed payment is capable of growing or shrinking over the existence of the loan, for ARMs.
Liquid Asset: This is a asset that can be easily converted into cash if it is not already a cash asset.
Loan Origination: This is the process by which a loan is made, which is able to included taking a loan application, processing it and then underwriting it, then closing the loan completely.
Loan Origination Fees: These are the fees that are paid to the mortgage lender or broker for the processing of the mortgage application. This fee generally takes the form of points, where one point is equal to one percent of the mortgage amount.
Loan-To-Value (LTV) Ratio: This is the relationship that exists between the value of the property (lower out of appraised value and sales price) and the loan amount. This value is expressed as a percentage of the property, e.g. $200,000 property with a $100,000 mortgage has a LTV value of 50%.
Lock-In Rate: This is an agreement that guarantees a mortgages rate of interest based on a specified period of time.
Low Down Payment Feature: This is often included in mortgages. It is required when there is assistance used to purchase a home using a low down payment.
Real Estate Terminology L to Strategies