Glossary of Terms: L

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Late Charge:
An additional charge that a borrower must pay as a penalty for failure to pay a required installment on time.

Lender Paid Mortgage Insurance (LPMI):
Insurance in which the interest rate includes the cost of the mortgage insurance. The interest rate will be slightly higher; however, this usually results in a larger tax deduction and lower monthly payment.

Lien:
A legal claim against a piece of property for payment of a debt or services rendered.

Liquid Assets:
Cash and other assets that can be converted quickly into cash.

Loan-to-Value Ratio:
The ratio between the mortgage amount and the appraised value or sales price of the property, expressed as a percentage.

Lock-in Period:
An amount of time before loan closing that the borrower can secure an interest rate for the loan.