Partial Payment | |
A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan. |
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Payment Change Date | |
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment adjustable-rate mortgage (GPARM). Generally, the payment change date occurs in the month immediately after the adjustment date. |
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Periodic Payment Cap | |
For an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase or decrease during any one adjustment period. |
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Periodic Rate Cap | |
For an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be. |
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Permits | |
With most major home improvement projects, work permits may be required. Permits provide legal permission to undertake a project and are usually given by local governments agencies. |
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Personal Property | |
Any property that is not real property. |
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PITI | |
Principle, interests, taxes and insurance (PITI) are the four components of a monthly mortgage payment. |
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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. |
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Planned Unit Development (PUD) | |
A project or subdivision that includes common property that is owned and maintained by a homeowners' association for the benefit and use of the individual PUD unit owners. |
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Point | |
A one-time charge by the lender for originating a loan. A point is 1 percent of the amount of the mortgage. |
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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. |
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Pre-Approval | |
When you work with your lender to get pre-approved, you are getting an indication of how much money you will be eligible to borrow when you apply for a mortgage. This process occurs before you complete an application for a loan. Pre-approval includes a screening of a borrower's credit history, and all information you give to your lender will be verified when you apply for your mortgage. |
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Pre-Qualification | |
The process of determining how much money a prospective home buyer will be eligible to borrow before he or she applies for a loan. |
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Prearranged Refinancing Agreement | |
A formal or informal arrangement between a lender and a borrower wherein the lender agrees to offer special terms (such as a reduction in the costs) for a future refinancing of a mortgage being originated as an inducement for the borrower to enter into the original mortgage transaction. |
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Preforeclosure Sale | |
A procedure in which the investor allows a mortgagor to avoid foreclosure by selling the property for less than the amount that is owed to the investor. |
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Prepayment | |
Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized. |
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Prepayment Penalty | |
A fee that may be charged to a borrower who pays off a loan before it is due. |
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Prime Rate | |
The interest rate that banks charge to their preferred customers. Changes in the prime rate influence changes in other rates, including mortgage interest rates. |
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Principal | |
The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage. |
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Principal Balance | |
The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. |
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Private Mortgage Insurance (PMI) | |
Also known as Mortgage Insurance, PMI is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. |
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Promissory Note | |
A written promise to repay a specified amount over a specified period of time. |
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Public Auction | |
A meeting in an announced public location to sell property to repay a mortgage that is in default. |
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Purchase and Sale Agreement | |
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold. The Purchase and Sale Agreement is a written contract that is signed by the buyer and seller. It states the terms and conditions under which a property will be sold. It includes: -- description of property, -- price offered, -- down payment, -- earnest money deposit, -- financing, -- personal items to be included, -- closing date, -- occupancy date, -- length of time the offer is valid, -- special contingencies, and -- inspection. |
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Purchase Money Transaction | |
The acquisition of property through the payment of money or its equivalent. |