Last Will
Literally, the will last executed by an individual, which revokes any former existing wills.

Liability
A debt or financial obligation owed by the account. This obligation reduces the account's overall net worth. The account's earnings or assets must be used to repay the claim.

Lien
An encumbrance against property for money, either voluntary or involuntary. All liens are encumbrances but all encumbrances are not liens.

Liquidity
The flexibility of being able to obtain the cash value of investments without incurring significant loss.

Listing
An agreement between an owner of real property and a real estate agent, whereby the agent agrees to secure a buyer or tenant for specific property at a certain price and terms in return for a fee or commission.

Listing Agent
A real estate agent obtaining a listing, as opposed to the selling agent.

Living Trust
A trust which is in effect during the life of the settlor, rather than upon his death (testamentary trust).

Living Will
A legal document in which an individual states, in advance of final illness or injury, his or her wishes regarding procedures and equipment designed to extend life.

Load
A sales charge associated with buying shares in some mutual funds. (See No-Load Fund.)

Loan Origination Fee
A one time set up fee charged by the lender.

Loan Servicing
The bookkeeping and collection of a loan. It may be done by the lender or by another for the lender.

Loan-To-Value Ratio
The ratio, expressed a percentage, of the amount of a loan to the value or selling price of real property. Usually, the higher the percentage, the greater the interest charged.

Lock-In-Rate
A commitment from a lender to make a loan at a preset interest rate at some future date, usually for not more than 60 days. A fee may be charged to "lock-in" a rate.

Long Term Financing
A mortgage or deed of trust for the term of 10 years or more, as distinguished from construction loan or interim.