Late Charge - A penalty that a borrower must pay when payment is made after the date it is due.

Lease Purchase Loan - The buyer leases a home with the option to buy. Each month's rent payments consists of PITI payments on the first mortgage, plus an extra amount is used for a savings account that accumulates for a down payment.

Lien – A legal claim against a property. Once the property is sold the lien holder is then paid the amount that is owed.

Loan to Value Ratio (LTV) - Relationship between the amount of a home loan and the total value of the property.

Lock in - Written agreement guaranteeing the homebuyer a specific interest rate providing the loan is closed within a certain time frame. The amount of points due upon closing are typically predetermined.