Dictionary of Mortgage Terms J - L

:: A Dictionary of Mortgage Terms -- J - L

Jumbo Loan

This is the term for a loan with a principal that exceeds the maximum set by Fannie Mae.

Lender

A financial institution that funds mortgage loans in exchange for a percentage return (plus principal) on the loan amount. A lender can also be a fund or private individual for mezzanine or hard money loans.

Loan

A monetary loan is money given up front to a borrower, who agrees to pay back the original loan amount (the principal), as well as a recurring installment fee for obtaining the loan (interest). Loans is a form of debt for the borrower, with the financial institution that made the loan acting as the creditor or lender.