Jumbo Loan
A loan above $252,000. These limits are set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

Knowledge
Whenever any representation, warranty or other statement contained in this Agreement, the Manual or any other Contract Document is qualified by reference to "the Correspondent's knowledge", " known to the Correspondent," or a similar phrase, such qualified reference shall be deemed to include knowledge of facts or conditions of which the Correspondent (including any of its directors, officers, agents, and employees) either is actually aware or should have been aware under the circumstances with the exercise of reasonable care, due diligence, and competence in discharging the Correspondent's duties under the Contract Documents. All matters of public record and all matters contained or disclosed in any Mortgage Loan Document shall be deemed to be known by the Correspondent. Any representation or warranty that is inaccurate or incomplete in any material respect is presumed to be made with the knowledge of the Correspondent, unless the Correspondent demonstrates otherwise. For purposes of this definition, "due diligence" means that care which the Correspondent would exercise in obtaining and verifying information for a loan in which the Correspondent would be entirely dependent on the property securing the loan and on the borrower's creditworthiness as security to protect the Correspondent's investment. For purposes of indemnification or repurchase obligations under the Contract Documents, any limitation or qualification as to knowledge set forth in any representation or warranty shall not prevent a recovery by Cypress Mortgage for breach of such representation or warranty.
 

Last Update
The Last Update column on Mortgage Rate Watch tables tells you when the information was provided by the lender to Mortgage Rate Watch. Mortgage Rate Watch always places new listings at the top of each table so that you, the borrower, may have immediate access to the most timely information. Times provided are all Pacific Standard Time, or, are reflective of the area where the lenders are located.     [TOP]

Lender
The bank, mortgage company, or mortgage broker offering the loan. Many institutions only "originate" loans and then resell the obligation to third parties.

Life of Loan Cap
The maximum interest rate that can be charged during the life of the loan. Also called Lifetime Cap. This value is often expressed as an increment above the initial loan rate. For example, an adjustable rate loan with an initial rate of 7.25% and a 6% lifetime cap will never adjust above a rate of 13.25% (7.25+6.0).

Lender
The bank, mortgage company, or mortgage broker offering the loan. Many institutions only "originate" loans and then resell the obligation to third parties.

Lifetime Cap
The amount, in percentage points, by which the highest possible rate in effect during the term of an adjustable rate loan may exceed the initial rate.

Loan Organization Fee
: Normally 1% of the loan amount, and charged by the lender to the buyer.    [TOP]

Loan-To-Value Ratio
The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage. A LTV ratio of 90 means that a borrower is borrowing 90% of the value of the property and paying 10% as a down payment. For purchases, the value of the property is assumed to be the purchase price, for refinances the value is determined by an appraisal.

Lock noun
The period, expressed in days, during which a lender will guarantee a rate. Some lenders will lock rates at the time of application while others will allow the borrower to lock the rate after the application is taken. Request information from your lender regarding lock procedures.

Lock verb
The act of committing to a mortgage rate. This action, taken by a borrower some time between the application and the closing dates, is sometimes accompanied by a payment by the borrower to the lender. Opposite of float