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Package Mortgage
Mortgage covering both real and personal property.
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Paper
A mortgage, deed of trust or land contract provided in lieu of cash.
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Partial Release
A provision in a mortgage that allows some of the property secured to be freed from serving as collateral.
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Participation Mortgage
A mortgage that allows the lender to share in part of the income or resale proceeds.
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Pass Through Certificates
Interests in a pool of mortgages sold by mortgage bankers to investors. Money collected as monthly mortgage payments is distributed to those who own certificates.
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Permanent Loan or Mortgage
A mortgage for a long period of time. Often referred to as the mortgage that pays off a construction loan on a completed property.
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Permit
A document issued by a government regulatory authority that allows the bearer to take some specific action.An occupancy permit allows the owner of a building to occupy or rent the building.
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PITI
Abbreviation for principal, interest, taxes and insurance, which may be combined in a single monthly mortgage payment.
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Planned Unit Development (PUD)
A zoning classification that allows flexibility in the design of a subdivision. PUDs include individually owned units as well as some common space that is jointly owned.
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Plat
A plan or map of a specific land area.
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Plat Book
A public record containing maps of land, showing the division of the land into streets, blocks, and lots and indicating the measurements of the individual parcels.
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Points
Fees paid to lenders. 1 point=1% of the loan amount. On a $100,000 loan 1 point is $1000. Points may be further classified into origination points or discount points.
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Portfolio Loan
A loan that is held as an investment by a bank or savings and loan, and NOT sold on the secondary market to investors.
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Power of Attorney
A written document authorizing a person to act on the behalf of another person. That person does not have to be an attorney. See Attorney-in-fact.
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Prepaid Interest
Prepaid interest is the interest charged to borrowers at closing to pay for the cost of borrowing for a balance of the month. For example, if a loan closes on the 19th of the month and the first payment is due on the 1st of the following month, the lender will charge 12 days of prepaid interest.
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Prepayment
Full or partial payment of the principal before the due date. This might occur if the borrower makes extra payments, sells the property, or refinances the existing loan.
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Prepayment Penalty
Fees paid by the borrower if they pay the loan before its due date.
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Primary Mortgage Market
Companies that originate and service mortgage loans (banks, savings & loans, credit union, mortgage bankers, institutional lenders) make up the primary mortgage market. See also secondary mortgage market.
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Prime Rate
The lowest commercial interest rate charge by a bank on short term loans to their most credit worthy customers. View current prime rate.
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Principal
The outstanding balance on a loan.
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Private Mortgage Insurance (PMI)
In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 2 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance payments are normally made annual or monthly. An impound account may be required.
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Probate
Court process to establish the validity of the will of a deceased person.
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Purchase Money Mortgage
A mortgage used to finance the purchase of a property.
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Property Tax
A government levy based on the market value (as assessed by the county assessor's office) of the property.
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Public Sale
An auction of property with notice to the general public.
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Purchase Agreement
See Agreement of Sale.
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