package mortgage
|
A loan secured against both land and chattels. |
partial payment
|
A payment that is not sufficient to cover the scheduled
monthly payment on a mortgage loan. |
partition
|
A court ordered division of property owned by two or more
owners, may take the form of a physical division of the property
or a forced sale and division of the proceeds. |
party wall
|
A shared wall between two pieces of property. The shared wall
generally stands on the property line. |
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. |
paydown factor
|
The portion of cash subtracted each month from the principal
of a mortgage security divided by the original principal of the
security. |
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. |
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. |
personal property
|
Any property that is not real property. |
PITI
|
Principal, interest, taxes and 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 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. |
plat
|
A map dividing a parcel of land into lots, as in a
subdivision. A plat book contains the plat maps for a given
area. |
point
|
One percent of the amount of the loan. |
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. |
power of sale
|
Clause inserted in a mortgage or deed of trust giving the
mortgagee (or trustee) the right and power, upon default in the
payment of the debt secured, to advertise and sell the property
at public auction. |
pre-approval
|
A pre-approval typically means that the lender has verified
your debt ratios, checked your credit rating, and reviewed income
levels with paycheck stubs or last year's W-2s. Not a loan
commitment. |
pre-payment
|
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. |
prepayment penalty
|
A fee that may be charged to a borrower who pays off a loan
before it is due. |
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. |
primary mortgage market
|
Lenders making mortgage loans directly to borrower's such as
savings and loan associations, commercial banks, and mortgage
companies. These lenders sometimes sell their mortgages into the
secondary mortgage markets. |
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. |
principal
|
The amount borrowed or remaining unpaid. The part of the
monthly payment that reduces the remaining balance of a
mortgage. |
principle balance
|
The outstanding balance of principal on a mortgage. The
principal balance does not include interest or any other charges.
See remaining balance. |
private mortgage insurance (PMI)
|
Mortgage insurance that is provided by a private mortgage
insurance company to protect lenders against loss if a borrower
defaults. Most lenders generally require PMI when the buyer's
down payment is less than 20%. However, at the point where the
mortgage balance is less than 80% of the appreciated value of the
home, the buyer may apply to have PMI removed from their
payments. With appreciation rates like those seen in Las Vegas in
recent years, this opportunity may occur sooner than
expected. |
procuring cause
|
A written promise to repay a specified amount over a
specified period of time. |
promissory note
|
A written promise to repay a specified amount over a
specified period of time. |
property manager
|
Someone who will manage a property for an investor and will
find rental tenants, sign leases, collect rents and generally
take care of the property. |
property tax
|
An annual tax paid quarterly to one or more governmental
jurisdictions based on the amount of the property assessment.
Generally paid as part of the mortgage payment. |
prorations
|
At a real estate sale and/or loan closing, the allocation of
charge and credits to the appropriate parties. |
|
PUD
|
see Planned Unit Development |
punch list
|
An itemized list documenting incomplete or unsatisfactory
items after the builder has has conducted a walk-thru inspection
with the buyer. |
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 mortgage
|
A mortgage offered by a home buyer as partial payment for the
house. A form of seller financing. |
purchase money transaction
|
The acquisition of property through the payment of money or
its equivalent. |
