The lender requires a loan origination fee (or points) to cover the direct costs of arranging the loan. …
Loan Term
The time set by a lender for a buyer to pay a mortgage. Most conforming loans have 30-year or 15-year terms. In the case of balloon loans, payments are based on the amortization period and a final …
Loan Type
The type of loan determines its borrowing limit, down payment requirements, and qualifying rules. Available loan types include conforming, jumbo, FHA, and VA. …
Loan-to-Value Ratio (LTV)
The ratio of the total loan amount to the value of the property. For lending purposes, the value is equal to the purchase price or the appraised value, whichever is lower. …
Local Improvement District (LID)
A legal district established by state law to benefit a specific area. Districts issue bonds to finance improvements such as sidewalks and sewer systems, then levy assessments on real estate in the …
Lock-In
A lender's commitment to a borrower to guarantee (or "lock in") a specific interest rate for a limited amount of time. …