P
- Parging
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The cement coat applied to block foundations.
- Partial Interest
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A shared ownership in a piece of property. May be divided among two or more parties.
- Partial Payment
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A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.
- Periodic Payment Cap
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The limit on how much a regular monthly payment on an Adjustable Rate Mortgage can change during one adjustment period.
- Periodic Rate Cap
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The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.
- Personal Property
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Owned items which are not permanently affixed to the land.
- Personal Residence
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The primary domicile of a person or family.
- Planned Unit Development (PUD)
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A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity.
- Plat
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A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.
- Point
- Pre-Approval
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The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.
- Prefabrication
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Any building or portion thereof that is manufactured and assembled off site, then erected on a property.
- Prepayment
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Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.
- Prepayment Penalty
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A fee that may be charged to a borrower who pays off a loan before it is due.
- Prequalification
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Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.
- Prime Rate
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The interest rate that banks or other lending institutions charge other banks or preferred customers.
- Principal
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The amount owed on a mortgage that does not include interest or other fees.
- Principal Balance
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The outstanding balance of principal on a mortgage, minus the interest due.
- Principal, Interest, Taxes, and Insurance (PITI)
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The most common constituents of a monthly mortgage payment.
- Private Mortgage Insurance (PMI)
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A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.
- Property
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Any item which is owned or possessed.
- Purchase Agreement
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A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.