LALLY COLUMN   
A concrete filled steel pipe used to support beams.

LATE CHARGE   
An extra charge, or penalty added to a regular mortgage payment when the payment is made late by an amount of time specified in the original loan document.

LATENT DEFECTS   
Any defect in a piece of property which is not readily apparent, but which has an impact of the value. Structural damage or termite infestation would be examples of latent defects.

LEASE   
A contract between a property owner and a tenant specifying the payment amount, terms and conditions, as well as the length of time the contract will be in force.

LEASEHOLD ESTATE   
A type of property ''ownership'' where the buyer actually has a long-term lease on the property.

LEASE OPTION   
A lease agreement that gives the tenant an option to buy the property. Usually, a portion of the regular monthly rent payment will be applied towards the down payment.

LEGAL DESCRIPTION   
The description of a piece of property, identifying its specific location in terms established by the municipality or other jurisdiction in which the property resides. Often related in specific distances from a known landmark or intersection.

LENDER   
The person or entity who loans funds to a buyer. In return, the lender will receive periodic payments, including principal and interest amounts.

LIABILITIES    
A person's outstanding debt obligations.

LIABILITY INSURANCE   
Insurance that covers against potential lawsuit brought against a property owner for alleged negligence resulting in damage to another party.

LIEN   
Any claim against a piece of property resulting from a debt or other obligation.

LIFE CAP   
A limit on how far the interest rate can move for an Adjustable Rate Mortgage.

LIKE-KIND PROPERTY   
Any property which is substantially similar to another property.

LINE OF CREDIT   
An extension of credit for a certain amount for a specific amount of time. To be used by the borrower at his discretion.

LIQUID ASSET   
Any asset which can be quickly converted into cash at little or no cost, or cash itself.

LOAN    
Money borrowed, to be repaid with interest, according to the specific terms and conditions of the loan.

LOAN OFFICER   
A person that "sells" loans, representing the lender to the borrower, and the borrower to the lender.

LOAN ORIGINATION   
How a lender refers to the process of writing new loans.

LOAN SERVICING   
The processing of payments, mailing of monthly statements, management and disbursement of escrow funds etc Typically carried out by the company you make payments to.

LOAN-TO-VALUE RATIO (LTV)   
The comparison of the amount owed on a mortgaged property to its fair market value.

LOCK-IN    
An agreement between a lender and a borrower, guaranteeing an interest rate for a loan if the loan is closed within a certain amount of time.

LOCK-IN PERIOD   
The amount of time the lender has guaranteed an interest rate to a borrower.

MAJOR DEFICIENCY   
A deficiency that strongly impacts the usability and habitability of a house. Or a deficiency that may be very expensive to repair.

MANUFACTURED HOUSING   
Once known as ''mobile homes,'' manufactured housing is any building which has been constructed off site, then moved onto a piece of real property.

MARGIN   
The difference between the interest rate and the index on an adjustable rate mortgage.

MARGINAL LAND   
Land whose value has been diminished due to some internal defect or external condition. In most cases, the cost to correct the flaw or condition is as much or more than the expected return from the property.

MASTER ASSOCIATION   
An umbrella organization that is made up of multiple, smaller home owner's associations. Often found in very large developments or condominium projects.

MATURITY   
The date on which the principal balance of a financial instrument becomes due and payable.

MERGED CREDIT REPORT   
A credit report derived from data obtained from multiple credit agencies.

METES AND BOUNDS   
A traditional way of describing property, generally expressed in terms of distance from a known landmark or intersection, and then following the boundaries of the property back to its origin.

METROPOLITAN AREA   
The accumulated land in and around a city or other municipality which falls under the political and economic influence of that entity.

MINERAL RIGHTS  
The legal right to exploit and enjoy the benefits of any minerals located below the surface of a parcel of land.

MISREPRESENTATION   
A statement by one party in a transaction that is incorrect or misleading. Most misrepresentations are deemed to be intentional and thus may constitute fraud. Others, however, some are rendered through simple mistakes, oversights or negligence.

MORTGAGE   
A financial arrangement wherein an individual borrows money to purchase real property and secures the loan with the property as collateral.

MORTGAGE BANKER   
A financial institution that provides primary and secondary mortgages to home buyers.

MORTGAGE BROKER   
A person or organization that serves as a middleman to facilitate the mortgage process. Brokers often represent multiple mortgage bankers and offer the most appropriate deal to each buyer.

MORTGAGEE   
The entity that lends money in a real estate transaction.

MORTGAGE INSURANCE   
A policy that fulfills those obligations of a mortgage when the policy holder defaults or is no longer able to make payments.

MORTGAGE INSURANCE PREMIUM (MIP)   
A fee that is often included in mortgage payments that pays for mortgage insurance coverage.

MORTGAGE LIFE INSURANCE   
A policy that fulfills the obligations of a mortgage when the policy holder dies.

MORTGAGOR   
The entity that borrows money in a real estate transaction.

MULTI-FAMILY PROPERTIES   
Any collection of buildings that are designed and built to support the habitation of more than four families.

NATIONAL ASSOCIATION OF MASTER APPRAISERS (NAMA)   
A non profit professional association organized in 1982, dedicated to the advancement of professionalism in real estate appraisal.

NATIONAL SOCIETY OF REAL ESTATE APPRAISERS   
An organization founded in 1956 which promotes standards of professionalism in its members.

NATURAL VACANCY RATE   
The percentage of vacant properties in a given area that is the result of natural turnover and market forces.

NEGATIVE AMORTIZATION   
When the balance of a loan increases instead of decreases. Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interest.

NEIGHBORHOOD LIFE-CYCLE   
The evolution of neighborhood use and demographics over time. Economic fluctuations, municipal zoning changes and population shifts can effect the life cycle.

NEIGHBORHOOD   
A subsection of a municipality that has been designated by a developer, economic forces or physical formations.

NET LEASABLE AREA   
The space in a development, outside of the common areas, that can be rented to tenants.

NEW ENGLAND COLONIAL   
An architectural style dating from early American history typified by a two-story building with clapboard siding.

NO-COST LOAN   
Many lenders offer loans that you can obtain at "no cost." You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.

NO-POINT LOAN   
A loan with no "points". The interest rate on such a loan will be higher than a loan with points paid. Also sometimes refers to a refinance loan where closing costs are included in the loan.

NON-CONFORMING USE   
The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a property is in use.

NONLIQUID ASSET   
Any asset which can not be quickly converted into cash at little or no cost.

NOTE   
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.

NOTE RATE   
The interest rate stated on a mortgage note.

NOTICE OF DEFAULT  
Formal written notice from a lender to a borrower that default has occurred.

OBSOLESCENCE   
The process of an assets value diminishing due to the development of more desirable alternatives or because of the degradation of its capabilities.

OCCUPANCY   
A physical presence within and control of a property.

OCCUPANCY RATE   
The percentage of properties in a given area that are occupied.

OCTOPUS RECEPTACLE   
An outlet with too many devices plugged into it, using a power strip or other device to multiply the outlets.

OFF-SITE IMPROVEMENTS   
Buildings, structures or other amenities which are not located on a piece of property, but are necessary to maximize the use of the property or in some way contribute to the value of the property.

OFF-STREET PARKING   
Designated parking spaces associated with a particular building or other structure which are not located on public streets.

OLD TERMITE ACTIVITY   
Where no termites are currently active, but indications of past activity can be seen.

ON-SITE IMPROVEMENTS   
Buildings, structures or other amenities that are erected on a piece of property and contribute to its value.

OPEN SPACE   
Any land which has not had any significant buildings or structures erected on it. Most often used to describe desirable neighborhood features like parks.

OPEN SPLICE   
An uncovered electrical connection.

ORIGINAL EQUITY   
The amount of cash a home buyer initially invests in the home.

ORIGINAL PRINCIPAL BALANCE   
The total amount of principal owed on a mortgage loan at the time of closing.

ORIGINATION FEE   
Refers to the total number of points paid by a borrower at closing.

OWNER FINANCING   
A transaction where the property owner provides all or part of the financing.

OWNER OCCUPIED   
The state of property wherein the owner occupies at least some portion of the property.