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Houston Mortgage > Glossary >
Home Equity > L 1-10
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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-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.
Lessee
The person who signs a lease.
Lessor
The person who grants a lease.
Liabilities
A borrower's debts and legal obligations.
Liability insurance (homeowner)
A policy that protects owners against claims by other parties of negligence, personal injury or property damage.
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.
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