|
|
Houston Mortgage > Glossary >
Credit Card > L 1-10
|
|
Late charge
A fee imposed on a borrower for not paying on time.
Late payment
A sum a borrower sends to a lender that is received past the date when it was due.
Late payment fee
Charge imposed on a debtor for not paying on time.
Liabilities
A borrower's debts and legal obligations.
LIBOR rate
LIBOR stands for London Interbank Offered Rate. It's the rate of interest at which banks offer to lend money to one another in the wholesale money markets in London. It is a standard financial index used in U.S. capital markets and can be found in the Wall Street Journal. In general, its changes have been smaller than changes in the prime rate. It's an index that is used to set the cost of various variable-rate loans, including credit cards and adjustable-rate mortgages.
Life cap
A limit on how much a borrowerĄ¯s percentage rate can increase or decrease over the term of the loan.
Line of credit
A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
Liquidation
A sale of a debtor's property, with the proceeds to be used for the benefit of creditors.
Liquidity
The ability to convert assets to cash quickly, without significant losses.
Loan application
A document in which a prospective borrower details his or her financial situation to qualify for a loan.
|
|
|
Houston Home Mortgage