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Late Charge: Penalty paid by a borrower when a payment is made after the due date.

: A piece of information of possible use in the search for a prospective client.

Lender: The bank, mortgage company, or mortgage broker offering the loan.

Leverage: The ratio of debt to total assets.

LIBOR (London Interbank Offered Rate): The interest rate charged among banks in the foreign market for short-term loans to one another. A common index for ARM (adjustable-rate mortgage) loans.

Lien: A legal claim by one person on the property of another for security for payment of a debt.

Limited liability company: A form of business structure designed to combine the best of corporate and partnership attributes into one entity.

Loan Application: An initial statement of personal and financial information required to apply for a loan.

Loan Application Fee: Fee charged by a lender to cover the initial costs of processing a loan application. The fee may include the cost of obtaining a property appraisal, a credit report, and a lock-in fee or other closing costs incurred during the process or the fee may be in addition to these charges.

Loan Origination Fee: Fee charged by a lender to cover administrative costs of processing a loan.

Loan-to-Value Ratio (LTV): The percentage of the loan amount to the appraised value (or the sales price, whichever is less) of the property.

Lock or Lock-In: A lender's guarantee of an interest rate for a set period of time. The time period is usually that between loan application approval and loan closing. The lock-in protects you against rate increases during that time.