Legal Fees and Disbursement - Some of the legal costs associated with the sale or purchase of a property. It's in your best interest to engage the services of a real estate lawyer.

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

Lender Processing Fee - The lender processing fee covers the cost of analyzing your loan application and compiling and packaging the necessary supporting documentation to close your loan.

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

Loan Fraud - Loan Fraud occurs when trying to qualify for a better loan by giving false information.

Loan Origination Fee - Fee charged by a lender to cover administrative costs of processing a loan. This usually includes the evaluation, preparation, and submittal of the loan.

Loan-To-Value Ratio (or LTV) - The percentage of the loan amount to the appraised value (or the sales price, whichever is less) of the property. The Loan-to-Value Ratio and down payment are different ways of expressing the same set of facts. This is calculated by taking the amount to be borrowed divided by the value of the home. For example, Jane wants to buy her first house which costs $100,000. She has a down payment of $15,000 and needs to borrow the remaining $85,000. The loan-to-value is 85% ($85,000 divided by $100,000).

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

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