|
Word |
Definition |
| Partial Release |
A release of a portion of property covered by a mortgage. |
| Permanent Mortgage |
A mortgage on completed construction for a long period of time. |
| PITI |
Payment consisting of principal, interest taxes and insurance. Used to indicate what is included in a monthly payment on real property. These are the four major portions of a usual monthly payment. |
| PMI (Private Mortgage Insurance) |
Insurance against a loss by a lender in the event of default by a borrower. The insurance is similar to insurance by a governmental agency such as FHA or VA, except that it is issued by a private insurance company. The premium is paid by the borrower and is included in the mortgage payment. |
| Pre-paid Expenses |
Necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance, and special assessments |
| Pre-payment |
A privilege in a mortgage permitting the borrower to make payments in advance of their due date |
| Pre-payment Penalty |
A penalty under a note, mortgage, or deed or trust, imposed when the loan is paid before it is due |
| Principal |
The amount of debt, not counting interest, left on a loan |
| Pro Rate |
To divide in proportionate shares, such as taxes, insurance, rent, or other items which the buyer and seller share as of the time of closing or other agreed upon time. |
