Tools & Resources

Jumbo Loan

A mortgage loan exceeding the price limit of the conforming loans that Fannie Mae and Freddie Mac can purchase. Lenders who offer jumbo loans usually charge a higher interest rate.

LIBOR (London Interbank Offered Rate)

The interest rate at which banks in the foreign market can borrow money from each other. Frequently used for setting adjustable rate mortgage interest rates.

Lien

A legal claim against a property. All liens must be satisfied before the title is transferred at closing.

Lifetime Cap

A provision of an adjustable rate mortgage (ARM) that limits the highest interest rate allowed over the life of the loan. For example, a 6% interest rate with a 5% lifetime cap cannot exceed an 11% interest rate for the life of the loan. ARM lifetime caps vary and can be used for comparison when shopping for a loan.

Liquid Assets

Cash, or assets that can be quickly converted to cash.