Leverage The use of a small amount of
cash--a 5 percent or 10 percent down payment--to buy a
piece of property.
Liabilities A borrower's debts and
financial obligations.
Liability insurance A policy that protects
owners against any claims of negligence, personal injury
or property damage.
Lien A claim laid by one person or company
on the property of another as security for money owed.
Life cap A limit on the amount that a loan
rate can move during the term of the mortgage. For
example, the rate on an adjustable-rate mortgage that
begins at 5 percent and has a lifetime cap of 6
percentage points cannot rise above 11 percent, even if
rates on fixed-rate mortgages soar to 20 percent.
Life-cycle cost analysis An analysis of a
building project's expected operating, maintenance and
replacement costs, calculated by an architect.
Limited partnership Real estate syndicates
and other investment groups use this type of ownership..
A general partner makes the group's investment
decisions, oversees the investment and is principally
liable for any losses.
Lintel A horizontal piece over a door or
window that carries the weight of the structure above
it.
Liquid assets Cash and all other assets
that can be converted to cash relatively quickly. Liquid
assets can include money in savings and checking
accounts, money-market accounts, and most certificates
of deposit.
Liquidated damages When a real estate deal
goes awry, one party often is entitled to liquidated
damages, a sum of money set out in the purchase contract
in that event.
Listing A piece of property placed on the
market by a listing agent.
Listing inventories The known number of
houses for sale within a given market.
Live-in partnership An arrangement in which
two unrelated people purchase a home.
Live-work space An officially designated
dwelling in which the occupant conducts a home-based
business or enterprise.
Load-bearing wall A wall that supports not
only its own weight, but the weight of other parts of a
home. Also called a bearing wall.
Loan application The first step toward
submitting a home loan requires the borrower to itemize
basic financial information.
Loan application fee A fee charged by
lenders to for making a loan application.
Loan commitment A promise by a lender or
other financial institution to make or insure a loan for
a specified amount and on specific terms.
Loan officer An official representative of
a lending institution who is empowered to act on behalf
of the lender within certain limits.
Loan origination fee Most lenders charge
borrowers an origination fee--or points--for processing
a loan. A point is 1 percent of the total loan amount.
Loan processing fee A fee charged by some
lenders for gathering information to enable the lender
to process the loan.
Loan term The amount of a time set by the
lender for a buyer to pay a mortgage. Most conventional
loans have 30-year or 15-year terms.
Loan -to-value ratio A technical measure
used by lenders to assess the relationship of the loan
amount to the value of the property
Lock-in When interest rates are volatile,
many borrowers want to "lock in" an interest rate and
many lenders will oblige, setting a limit on the amount
of time the lock-in is in effect.
Loft A living space not partitioned into
rooms or a small space built above a larger room.
Log cabin Homes constructed of rough-hewn
timbers and a standard housing form in the early
European settlement of the U.S.
Low-ball offer An offer made to a seller
that is substantially below market value. The longer a
property stays on the market, the more likely there are
to be such offers.
Low density A low concentration of housing
units in a specific area.
Low-documentation loan A mortgage that
requires only minimal verification of income and assets.
Low-down-payment loan A home loan that
requires the borrower to make only a small down payment
before obtaining the financing needed to purchase a
house.
Landscape A home's surroundings can range
from a shrub-studded emerald lawn to a native-plant
xeriscape. It is a major component of curb appeal.
Landscape architect A professional who
holds a degree in landscape architecture, which involves
training in horticulture, landscape design and planning.
Landscape designer A landscape designer has
training in horticulture and landscape planning, but
does not necessarily hold a degree.
Landscape contractor A professional who
carries out the plans of a landscape architect or a
landscape designer.
Late charge A fee a lender imposes on a
borrower when the borrower does not make a payment on
time.
Late payment A payment a lender receives
after the due date has passed.
Latent defect An invisible problem in a
piece of property such as bad wiring, termite damage or
lead paint.
Lead A metallic chemical element present in
older dwellings, primarily in the form of lead-based
paint and lead plumbing. Exposure to lead has been found
to be a health risk.
Lease A binding agreement that contains the
terms and conditions of a renter's occupancy.
Leasehold estate An arrangement in which
the borrower does not own a specific piece of property
but possesses a long-term lease.
Lease option A lease that contains the
right to purchase the property for a specific price
within a certain time frame.
Lender A bank, savings institution or
mortgage company that offers home loans.
Legal blemish Blemishes on a piece of
property, such as a zoning violation or fraudulent title
claim.
Legal description A specific way of
identifying and locating a piece of real estate that is
acceptable to a court.
Letter of intent A formal statement that
the buyer intends to purchase the property for a certain
price on a certain date.
