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Late charge
The penalty that must be paid by the borrower when a payment is late. This must be spelled out; make sure you know when you would incur such a charge.

Lease-purchase mortgage loan
A financing option for low- and moderate-income home buyers, by which they can lease a home, with an option to buy, from a nonprofit organization. Each month's rent payment consists of principal, interest, taxes and insurance, plus an extra amount that is sent to a savings account in order to accumulate money for a down payment.

Lien
A claim upon a piece of property for the payment or satisfaction of a debt or obligation.

Listing Price
The price at which the house is listed; the asking price.

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 written agreement from the lender to offer a specified interest rate if the mortgage goes to closing within a set period of time.

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