Mortgage Glossary
Loan Estimate (LE)
A new form/disclosure that replaces the current Good Faith Estimate (GFE) and early Truth in Lending (TIL) disclosures that reflects the key features, costs and risk of the mortgage loan for which they are applying. The form must be provided to the consumer three business days after the application date.
Loan Program
A type of loan defined by its term and repayment features. Examples include: 30-year fixed rate mortgage, 10/1 ARM mortgage.
Loan Servicing
The term used to describe the collection and management of your monthly mortgage payment, which includes principal and interest. This typically includes processing payments, sending statements and managing escrow accounts.
Loan-to-Value Ratio (LTV)
A down payment risk assessment calculation used by lenders: The mortgage amount divided by the property's assessed value, expressed as a percentage. For example, a $150,000 loan divided by a property valued at $200,000 equals a 75% LTV loan ratio, and a down payment of 25%. If the lender requires a loan ratio of 80% or under (a 20% down payment), the example shows a favorable LTV. There are different maximum LTV limitations for different loan programs. A down payment risk assessment calculation used by lenders: The mortgage amount divided by the property's assessed value, expressed as a percentage. For example, a $150,000 loan divided by a property valued at $200,000 equals a 75% LTV loan ratio, and a down payment of 25%. If the lender requires a loan ratio of 80% or under (a 20% down payment), the example shows a favorable LTV. There are different maximum LTV limitations for different loan programs. A down payment risk assessment calculation used by lenders: The mortgage amount divided by the property's assessed value, expressed as a percentage. For example, a $150,000 loan divided by a property valued at $200,000 equals a 75% LTV loan ratio, and a down payment of 25%. If the lender requires a loan ratio of 80% or under (a 20% down payment), the example shows a favorable LTV. There are different maximum LTV limitations for different loan programs. A down payment risk assessment calculation used by lenders: The mortgage amount divided by the property's assessed value, expressed as a percentage. For example, a $150,000 loan divided by a property valued at $200,000 equals a 75% LTV loan ratio, and a down payment of 25%. If the lender requires a loan ratio of 80% or under (a 20% down payment), the example shows a favorable LTV. There are different maximum LTV limitations for different loan programs. A down payment risk assessment calculation used by lenders: The mortgage amount divided by the property's assessed value, expressed as a percentage. For example, a $150,000 loan divided by a property valued at $200,000 equals a 75% LTV loan ratio, and a down payment of 25%. If the lender requires a loan ratio of 80% or under (a 20% down payment), the example shows a favorable LTV. There are different maximum LTV limitations for different loan programs. A down payment risk assessment calculation used by lenders: The mortgage amount divided by the property's assessed value, expressed as a percentage. For example, a $150,000 loan divided by a property valued at $200,000 equals a 75% LTV loan ratio, and a down payment of 25%. If the lender requires a loan ratio of 80% or under (a 20% down payment), the example shows a favorable LTV. There are different maximum LTV limitations for different loan programs.
Lock Rate
See Rate Lock.
