LOAN APPLICATION (1003) >> The form potential customers must complete to apply for a home loan. This application is commonly referred to as ?the 1003? and is produced by the Federal government.

LOAN RISK >> The risk category assigned to a loan, which estimates the probable risk of delinquency and loss in the future.

LOAN TERM >> The loan term is the period of time over which the loan will be paid. First mortgage loans typically have terms of 30, 20 or 15 years.

LOAN TO VALUE RATIO (LTV) >> The loan amount in relationship to the appraised value or selling price expressed as a percentage .

LOSS PAYABLE CLAUSE >> A clause in an insurance policy listing the priority of claims in the event of destruction of the property insured. Generally, a mortgage or beneficiary under a deed of trust is the party appearing in the clause, being paid up to the amount owing under the mortgage or deed of trust before the owner is paid.

MARGIN >> A constant number, set in the terms of the note, added to an rate index to compute the interest rate on an adjustable-rate mortgage. This fixed number is added to an index to determine the new interest rate when a new change period begins.

MARKET VALUE >> The highest price a buyer would pay and the lowest price a seller would accept on a property. Market value may be different from the price a property could actually be sold for at a given time.