Late
Payment
A payment made later than agreed upon in a
credit contract and on which additional charges
may be imposed.
Lease
A means of acquiring the use of the vehicle
for a specific period of time in exchange
for regular payments without actually purchasing
it. As part of leasing agreement, the company
leasing the vehicle maintains ownership. During
the lease, the lessee or the person leasing
the auto is responsible for its reasonable
maintanence. The auto is returned to the company
when the lease expires unless the lessee decides
to buy the car, assuming the lease contract
allows for that option.
Lease Buy Out
In auto leasing, the option to buy a leased
auto usually during the life of a lease or
when the lease ends. You have an option to
buy out the lease only if you have an open-end
lease, which is better than a closed-end lease.
Also called an option to buy.
Lease Fee
The cost of leasing the vehicle. It equals
the monthly lease payment multiplied by the
lease term. See also capitalized cost and
residual value.
Lender
Company that performs the functions necessary
to complete a mortgage transaction. Lenders
include approved sellers, mortgage brokers,
and third-party originators (TPOs).
Lender Fees
These are items payable in connection with
the loan and contribute to the total amount
of the loan's closing costs. These are the
fees that lenders charge to process, approve
and make the mortgage loan. See Closing Costs
for more information.
Lessee
A person who signs a lease to get temporary
use of property.
Lessor
A company that provides temporary use of property
usually in return for periodic payment.
Liability on an Account Legal responsibility
to repay debt.
Lien
A claim upon a piece of property for the payment
or satisfaction of a debt or obligation.
Liquid Assets
Cash or assets that can be immediately converted
to cash.
List Price
Another term for manufacturer's suggested
retail price or sticker price. List price
is the recommended selling price for a vehicle
and each of its optional accessories as defined
by the manufacturer.
Loan Amount The amount of debt not including
interest.
Loan Program
Defines the scope of your mortgage, including
the type of interest rate you have and the
mortgage term. For example, your loan program
may be for 30 years with a fixed rate or may
be for 5 years with an adjustable rate.
Loan terms
Different requirements of a loan that determine
the borrower's and lender's financial obligations.
Common terms are Annual Percentage Rate (APR),
principal, and length of loan. Usually, the
better the borrower's credit history, the
better the loan terms. A good combination
of loan terms is simple interest, a low APR
and no prepayment penalties.
Loan-To-Value Ratio
The relationship between the amount of the
mortgage loan and the appraised value of the
property expressed as a percentage.
Lock-In
A commitment you obtain from a lender assuring
you a particular interest rate or feature
for a definite time period. Provides protection
should interest rates rise between the time
you apply for a loan, acquire loan approval
and close the loan and receive the funds you
have borrowed.
Lock Period
A lock period refers to the amount of time
prior to closing that you can secure an interest
rate for your loan. Generally, lock periods
range from 30 days to over 90 days. Generally,
the longer the lock period, the more you pay
in points or interest. If your loan is "lockable",
your Lender will identify the available lock
period.
Lockable
You can "lock in" the current interest
rate for a set length of time, usually 30,
45 or 60 days. By "locking in" a
rate the interest rate is locked and if interest
rates increase, your "locked in"
rate will not change. To lock an interest
rate, you must enter into a written agreement
with your Lender.
Top
of Page
|