Glossary |
Terms that are on use on this site.
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| PITI | An acronym for payments to lender that cover principal, interest, taxes and insurance on a property. |
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| Plat | A map of a piece of land showing boundary lines, streets, actual measurements and easements. |
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| PMI (Private Mortgage Insurance) | Insurance written by a private mortgage insurance company to protect the lender against losses caused by mortgage default. This is commonly required on loan transactions involving less than a 20% down payment or equity position. |
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| Point | A fee paid to the lender on closing day to increase the effective yield of the mortgage. A point is one percent of the amount of the mortgage loan. Also called a discount point. |
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| Pre-Approval | A commitment by a lender to extend credit provided that specific conditions are met. |
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| Pre-Qualification | A preliminary assessment of a buyer's ability to secure a loan, based on a specific set of lending guidelines and buyer representations made. This is not a guarantee or commitment by a lender to extend credit. |
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| Prepayment Penalty | A charge paid to the lender by the borrower if a mortgage loan is repaid before its term is over. |
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| Prime Rate | The interest rate charged by banks to their preferred corporate customers, it tends to be an estimator for general trends in short term interest rates. |
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| Principal | The amount borrowed or remaining unpaid; also, that part of the monthly payment that reduces the outstanding balance of a mortgage. |
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