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Loan Glossary

Plain-English definitions for every term you'll encounter in the loan process

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Showing 3 terms in General starting with L
L

Lien

General

A legal claim against a property used as collateral for a debt. Mortgages, home equity loans, and unpaid taxes all create liens. All liens must typically be resolved before a property can be sold.

Loan Origination Fee

General

A fee charged by the lender for processing and underwriting the loan, typically 0.5%–1% of the loan amount. It may be listed as "points" (1 point = 1% of loan amount).

Loan-to-Value Ratio (LTV)

General

The ratio of the loan amount to the property's appraised value, expressed as a percentage. Higher LTV means more risk for the lender. LTV over 80% typically requires private mortgage insurance (PMI).