Late Charge: What the mortgage company will add on to your payment if it is received late. Can be as high as 5 percent of the total payment.

Lien: A legal hold or claim on property as security for a debt or charge.

Life Cap: Determines the total amount that your adjustable mortgage interest rate and monthly payment can fluctuate during the duration of the loan. Different from the Periodic Cap, which limits the extent to which your interest rate can fluctuate during a predetermined adjustment period.

Loan Commitment: A written promise to make a loan for a specified amount on specific terms.

Loan to Value Ratio: The relationship between the amount of the appraised value of the property, expressed as a percentage of the appraised value.

Lock-in: A written agreement in which the lender guarantees a specified interest rate if a mortgage goes to closing within set period of time.

Courtesy of Sonata Realty