Glossary of Real Estate Terms (lo-lo)

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

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.