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Partial Payment: A payment that is not
sufficient to cover the scheduled monthly
payment on a mortgage loan. Normally, a lender
will not accept a partial payment, but in times
of hardship, you can make this request of the
loan servicing collection department.
Payment Change Date: The date when a new
monthly payment amount takes effect on an
adjustable-rate mortgage (ARM) or a
graduated-payment mortgage (GPM). Generally, the
payment change date occurs in the month
immediately after the interest rate adjustment
date.
Periodic Payment Cap: A limit on the
amount that payments can increase or decrease
during any one adjustment period on an
adjustable-rate mortgage.
Periodic Rate Cap: The limit on the
amount that the interest rate can increase or
decrease during any one adjustment period,
regardless of the index, on an adjustable-rate
mortgage.
Personal Property Any type property which is not
real property.
PITI Principal, Interest, Taxes and
Insurance: The amount of the monthly payment
including principal, interest, and an amount to
be placed into the escrow (impound) account.
PITI: The four components of a monthly
mortgage payment on impounded loans. Principal
refers to the part of the monthly payment that
reduces the remaining balance of the mortgage.
Interest is the fee charged for borrowing money.
Taxes and insurance refer to the amounts that
are paid into an escrow account each month for
property taxes and mortgage and hazard
insurance.
PITI Reserves: A cash amount that a
borrower must have on hand after making a down
payment and paying all closing costs for the
purchase of a home. The principal, interest,
taxes, and insurance (PITI) reserves must equal
the amount that the borrower would have to pay
for PITI for a predefined number of months.
Planned Development: Five or more
individually owned lots where one or more other
parcels are owned in common or there are
reciprocal rights in one or more other parcels;
A subdivision.
Planned Unit Development: A type of
ownership where individuals actually own the
building or unit they live in, but common areas
are owned jointly with the other members of the
development or association.
Contrast with condominium, where an individual
actually owns the airspace of his unit, but the
buildings and common areas are owned jointly
with the others in the development or
association.
Plat: A map or plan of a certain parcel
of land.
Plat Book: A book showing the lots and
legal subdivisions of an area.
PMI: Mortgage insurance that is provided
by a private mortgage insurance company to
protect lenders against loss if a borrower
defaults, normally insuring the top 20% of the
loan and not the whole loan.
Pocket Listing: A real estate term where
a real estate agent keeps an open listing hidden
from his/her associates.
Point: A point is 1% of the amount of the
mortgage.
Points: A fee charged by the lender in
order to obtain a higher earning than the
interest stated in the mortgage note.
Possessory Interest: The right to
possess.
Power of Attorney: A legal document that
authorizes another person to act on one’s
behalf. A power of attorney can grant complete
authority or can be limited to certain acts
and/or certain periods of time.
Pre-Approval: When a lender commits to a
loan before the borrower finds a property to
buy. Even if you haven't found a property, some
lenders will give you a written preapproval on a
loan so that homebuyers will know exactly what
they can afford to offer for a home; and to show
a seller and your realtor how serious you are
about buying a home.
Preliminary Title Report: A report
showing the condition of title before a sale or
loan transaction. After completion of the
transaction, a title insurance policy is issued.
Prepayment: Paying off all or part of the
mortgage before the scheduled date.
Prepayment Penalty: A fee that may be
charged to a borrower who pays off a loan before
it is due.
Pre-Qualification: A loan officer’s
written opinion of the ability of a borrower to
qualify for a home loan based on verbal
inquiries about the borrower's debt, income, and
savings.
Prescription: Obtaining title to property
by adverse possession by occupying it for the
period determined by law to bar action for
recovery.
Prima Facie: Presumptive on its face;
true, valid, or sufficient at first impression.
Prime Rate: The interest, or discount
rate charged by a commercial bank to its largest
and strongest customers. Changes in the prime
rate are widely publicized in the news media and
are used as the indexes in some adjustable rate
mortgages, especially home equity lines of
credit. Changes in the prime rate do not
directly affect other types of mortgages, but
the same factors that influence the prime rate
also affect the interest rates of mortgage
loans.
Principal: The remaining unpaid amount or
the amount borrowed. Also the amount of the
monthly payment that reduces the remaining
balance of a mortgage.
Principal Balance: The outstanding
balance of principal on a mortgage. The
principal balance does not
include interest or any other charges.
Principal Balance: The amount of
principal that has not yet been repaid.
Principal, Interest, Taxes, and Insurance: The
four components of a monthly mortgage payment on
impounded loans. Principal refers to the part of
the monthly payment that reduces the remaining
balance of the mortgage. Interest is the fee
charged for borrowing money. Taxes and insurance
refer to the amounts that are paid into an
escrow account each month for property taxes and
mortgage and hazard insurance.
Private Mortgage Insurance: Mortgage
insurance that is provided by a private mortgage
insurance company to protect lenders against
loss if a borrower defaults, normally insuring
the top 20% of the loan and not the whole loan.
Promissory Note: The written document
signed by the borrower promising repayment of
the loan showing the amount of monthly payments,
interest rate, first payment date, last payment
date, and the late charge and prepayment
provisions.
Proration of Taxes: To divide or prorate
the taxes equally or proportionately to time of
use.
Public Auction: A meeting in an announced
public location to sell property to repay a
default mortgage.
Puffing: An exaggerated buildup by a
salesperson or seller about a property. Legally,
it is regarded only as an opinion and does not
necessarily represent the facts.
Purchase Agreement: A written contract
signed by the buyer and seller stating the terms
and conditions under which a property will be
sold.
Purchase Money Encumbrance: A trust deed
or mortgage given by the buyer to the seller as
part or all of the purchase price of the
property.
Purchase Money Transaction: The
acquisition of property through the payment of
money or its equivalent. |
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