Look for words, Phrases & Definitions in Alphabetical Order:
P
Parging - The cement coat applied to block foundations.
Partial Interest - A shared ownership in a piece of property. May be divided among two or more parties.
Partial Payment - A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.
Periodic Payment Cap - The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.
Periodic Rate Cap - The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.
Personal Residence - The primary domicile of a person or family.
Pesonal Property - Owned items which are not permanently affixed to the land.
Planned Unit Development (PUD) - A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity.
PLAT - A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.
Point - A percentage of a mortgage amount (one point = 1 percent).
Pre-Approval - The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.
Pre-Qualification - Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.
Pre-Qualification - Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.
Prefabricated - Any building or portion thereof which is manufactured and assembled off site, then erected on a property.
Prepayment - Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.
Prepayment Penalty - A fee that may be charged to a borrower who pays off a loan before it is due.
Prime Rate - The interest rate that banks and other lending institutions charge other banks or preferred customers.
Principal - The amount owed on a mortgage which does not include interest or other fees.
Principal Balance - The outstanding balance of principal on a mortgage. Does not included interest due.
Principal, Interest, Taxes, and Insurance (PITI) - The most common constituents of a monthly mortgage payment.
Private Mortgage Insurance - A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.
Property - Any item which is owned or possessed.
Purchase Agreement - A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.