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Purchase Contract (Agreement/Offer)
The agreement between a seller and buyer of real property, describing the price and terms of the sale. Also called sales contract |
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PUD (Planned Unit Development)
Planned combination of various land uses, like for example housing, recreation, and shopping in one contained subdivision or development. A major feature of a PUD includes areas of common land for use by the housing unit owners; common areas are generally owned and maintained by association of unit owners. |
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Processing
Preparation of a mortgage loan application and the supporting documentation to be considered by a lender or insurer. |
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Private Mortgage Insurance (PMI)
In case a borrower does not have a 20 percent down payment, lenders will agree to a smaller down payment (sometimes as low as 5 percent). However, borrowers are frequently required to carry private mortgage insurance with the smaller down payment loans. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on the structure of the loan. |
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Principal
Amount of debt left on a loan (not counting interest). |
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Prepayment Penalty
Fee charged by lenders for paying your mortgage off in advance.
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Prepayment
Ability to pay off the outstanding balance of a loan.
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Preliminary Title Report
Results of a title search carried out by a title company. This is previous to issuing a title binder or commitment to insure clear title. |
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Points ( Loan Disclosure Points)
The prepaid interest on a mortgage which is frequently paid at settlement. Each point equals one percent of the mortgage total amount (one point on an $80,000 mortgage is $800, or 1 percent of 80,000). Nearly all lenders offer mortgages with several combinations of interest rates and points; usually, the lower the interest rate, the more points you will pay at the time of closing.
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PITI (Principal, Interest, Taxes and Insurance)
Four elements (for most homeowners) included in the monthly mortgage payment. The first two elements (principal and interest) are the portions of the payment assigned to repay the mortgage itself; the second two (taxes and insurance) are paid by the lender into a special escrow account to pay for homeowners insurance and property taxes.
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