APPLY
NOW / LOGIN
GLOSSARY
Lien
It is the settlement of a legal claim like a mortgage debt made when a property is sold. If there is more than one debt, each debt considered a lien, is paid off in order.
Life cap
A limit or ceiling on the amount a borrower's interest rate can increase or decrease over the life of the loan.
Lifeline account
An account option made mandatory in many states which allows low income customers to have a checking account or savings account. These accounts are basic accounts which incur no monthly fees and require no minimum deposit.
Lifetime learning credit
A tax credit available for a portion of qualified tuition, education, and all related costs. This credit can be claimed for anyone is the taxpayer's family.
Lifetime rate cap
This cap limits the amount that an interest rate can increase or decrease in an adjustable rate mortgage of the life of the mortgage.
Line of credit
The maximum amount a financial institution is committed to lend to a borrower during a designated time period.
Liquid assets
Property and cash that is easily accessible and can be turned into fast cash.
Liquidation
When the debtor's property is sold and the proceeds are used to the benefit of the creditors.
Liquidity
The ability to convert assets into cash without losing significant value.
Lis pendens
A notice which has been filed or recorded to alert all interested parties that there is pending real estate lawsuit over the title or piece of property.
List price
The bottom line price as established by the manufacturer. It is a good practice to not purchase items at list price.
Listing
The green light or authorization for a real estate agent to market and sell a piece of land or home.
Loan application
The documentation necessary for applying for a loan which lists and highlights the potential borrower's financial situation.
Loan application fee
A fee charged by the lender in order to accept and process the loan application.
Loan consolidation
Usually referenced in terms of student loans. This process allows students to combine several educational loans into one new loan, extending the loan repayment period, and permitting one monthly payment. This is generally a relief to newly graduated students since the combined loan repayment is substantially less than paying several loans each month.