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GLOSSARY TERMS

Late fee
A special fee charged if a payment is paid after the due date. 

Late payment

A payment that is paid after its due date.

Lease
A legal agreement that allows a consumer to use property (vehicle, house, etc.) for a certain period of time. The consumer makes regular payments during this time period, but does not have any ownership of the property after this time period has ended.

Lender

An organization or person that loans money to people.

Liability

A certain amount of money that must be paid to someone else. Also, something that puts you at a disadvantage. Almost the opposite of an asset.

Lien
A claim on property for security or payment of a debt. It may be real or personal property. (A common one is a house.)

Line of credit

The designated amount of credit that will be extended for a given period of time.

Loan
Financial aid given from a lender. Loans must be repaid in certain amounts over periods of time, usually with interest.

Loan-to-value ratio (LTV)

The amount of a home loan compared to the appraised value of the home. Generally, a lower loan-to-value ratio results in more favorable loan terms.