joint tenancy
Form of ownership to property which indicates that each party owns the whole property and that ownership is not separate. In the event of the death of one party, the survivor owns the property in its entirety.
jumbo loan
Also known as a non-conforming loan. The amount of the loan exceeds standards that would make it eligible for sale to Fannie Mae and Freddie Mac.
latent defect
Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.
lease
The legal agreement between the Landlord and Tenant setting forth the rules and conditions for occupancy by the tenant and limitations of the landlord.
leasehold estate
An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
lease option
An alternative financing option that allows home buyers to lease a home with an option to buy. Each month's rent payment may consist of not only the rent, but an additional amount which can be applied toward the down payment on an already specified price.
legal description
A property description, recognized by law, that is sufficient to locate and identify the 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
An encumbrance against property for money, either voluntary or involuntary.
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.
line of credit
Also called an "open line of credit" secured on your home. Often there are no closing costs involved, or the lender offers to pay all closing costs. Use like a checking account, borrowing credit over time up to your credit limit.
liquid asset
A cash asset or an asset that is easily converted into cash.
loan
A sum of borrowed money that is generally repaid with interest.
loan officer
A person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.
loan origination
How a lender refers to the process of obtaining new loans.
loan-to-value (LTV)
The percentage relationship between the amount of the loan and the appraised value or sales price.
lock-in
An agreement in which the lender guarantees a specified interest rate for a certain amount of time at a certain cost.
lock-in period
The time period during which the lender has guaranteed an interest rate to a borrower.
