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Houston Mortgage > Glossary >
Credit Repair > L 1-10
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Laddering
Staggering deposits into investments such as CDs in order to vary and better the rate of return.
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.
Latent defect
A deficiency in a piece of property that can¡¯t be seen easily, such as termite damage or the presence of dangerous levels of radon.
Lease extension
The continuation of an existing lease, at the original monthly payment, usually on a month-by-month basis.
Lease-like loan
Also known as payment saver loan. It combines features of a lease and a conventional auto loan and is most often offered by credit unions. Payments can be as much as 30 percent less than a conventional amortized loan, because a lease-like loan has a big balloon payment at the end. Requires no down payment or security deposit. Mileage allowance is usually higher. At the end of the loan, the borrower can sell or trade in the car and pay off the loan balance, or keep the car and refinance the amount owed, or return the car to the lender as payment for the balance.
Lease-purchase mortgage
A financing option that allows a potential homebuyer to lease a property with the option to buy. Often constructed so the monthly rent payment covers the owner's first mortgage payment, plus an additional amount as a savings deposit to accumulate cash for a down payment. A seller may agree to a lease-purchase option if the housing market is saturated and the seller is having difficult selling the property.
Liabilities
A borrower's debts and legal obligations.
Lien
A legal claim against property for payment of a debt or for services rendered. One who holds a lien has the right to sell the property to obtain the money, or to recover the money when the property is sold. Valid liens are filed with county recorder's offices.
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Houston Home Mortgage