Glossary of Mortgage Terms

A land contract is a seller-financed deal in which the buyer pays the property owner directly instead of going through a bank. The seller keeps legal title to the property until the full purchase price is paid.

A land survey is a professional way to measure and map the boundaries, size, and physical features of a piece of land. It is used to set legal property lines and help with real estate deals.

A lease option is a rent-to-own agreement that gives you the right, but not the obligation, to buy a home you're renting at a price you and the seller agree on upfront.

A lender credit is money your mortgage lender gives you to help cover closing costs, in exchange for a slightly higher interest rate on your loan.

A lien is a legal claim on a piece of property made by a creditor or government agency. It gives them the right to collect on an unpaid debt before the property can be sold or given to someone else.

A life estate is a legal agreement that lets a homeowner give their property to a chosen heir after they die, but they can still live in and use the home for the rest of their life.

With a limited cash-out refinance, you get a new loan that pays off your current mortgage. The new loan may also give you a small amount of cash back, usually no more than 1% of the new loan balance or $2,000.

A lis pendens is a notice filed in a county’s land records that notifies the public and anyone searching the property that a lawsuit involving the property is still pending in the court.

A loan estimate is a three-page, standardized form across the industry that lenders must send you within three business days of getting your mortgage application, outlining estimated costs and loan terms.

A loan modification is a permanent change to the terms of your mortgage that can lower your monthly payment and help you avoid losing your home.