immoafrica keeps you informed. Stay smart with our Mortgage Glossary. This week we take a look at the letter L.
Loan Amount
Refers to the full amount as stipulated in the home loan contract that the borrower agrees to pay back to the lender
Lender
A bank or mortgage company, who lends you the funds to purchase a property
Levy
Costs incurred for a month for rendering certain goods or services, for example, your share of the costs incurred by a complex for a month.
Loan to Value Ratio
Refers to a lending risk assessment ratio, which lenders examine before approving a home loan. It is the market value of a property to the value of the loan that will finance the purchase. The loan-to-value ratio, informs the lender, in the event of a default in the future, by the borrower, of the potential to recoup funds by selling the property.
Lien
The lenders right to claim the borrower’s property should the borrower default on payment.
Latent Defect
A structural defect, hidden from view, not detectable by an ordinary home inspection.
