REAL ESTATE DICTIONARY - P
Package Mortgage
Mortgage covering both real and personal property.
Paper
A mortgage, deed of trust or land contract which is
given instead of cash.
Parole Evidence
The legal rule which prevents previous oral or written
negotiations to a signed contract from changing the
contract.
Partial Release
A release of a portion of property covered by a mortgage.
Permanent Mortgage
A mortgage on completed construction on the same property
under one mortgage or trust deed.
Personality
Property which is movable. All property is either personality,
realty or mixed.
Physical Depreciation
A term that is frequently used when physical deterioration
is intended. In a broad concept it may relate to those
elements contributing to depreciation that are existent
or inherent in the physical property itself, as distinguished
from other and external circumstances that may influence
its utilization. Not a clear or proper them without
qualification and explanation.
PITI
Abbreviation for principal, interest, taxes and insurance,
often combined in a single monthly mortgage payment.
Plat
A map or chart of a lot, subdivision or community, showing
boundary lines, buildings and easements.
PMI
Abbreviation for private mortgage insurance: insurance
issued by a company, which insures the lender against
loss in the event that the borrower defaults on the
mortgage.
Points
Origination fees charged by the originating lender or
broker and/or discount fees charge by lenders to increase
the overall yield. A point is equal to one percent of
the principal amount of your mortgage.
Portfolio Loan
Loans held as an investment by a bank, savings and loan
or credit union.
Power of Attorney
A written instrument authorizing a person to act as
the agent of the person granting it, and a general power
authorizing the agent to act generally in behalf of
the principle. A special power limits the agent to a
particular or specific act as: a landowner may grant
an agent special power of attorney to convey a single
and specific parcel of property. Under the provisions
of a general power of attorney, the agent having the
power may convey any or all property of the principal
granting the general power of attorney..
Prepaid Interest
Prepaid interest is the interest charged to borrowers
at loan closing to pay for the cost of borrowing for
a partial month. For example, if a loan closes on the
15th of the month and the first payment is due 45 days
later, the lender will charge 15 days of prepaid interest.
Prepaid Items of Expense
Perorations of prepaid items of expense which are credited
to the seller in the closing statement.
Prepayment
Full payment of the principal before the due date; occurs
when a property is sold or the borrower refinances the
existing loan.
Prepayment Penalty
Charge levied by the lender for paying off a mortgage
loan before its maturity date.
Primary Mortgage Market
The process of obtaining a real estate loan, including
the consumer's completion of a loan application form,
validation of the credit and property information, loan
underwriting by the lender and closing of the mortgage
loan.
Primary Residence
Considered the permanent location of residency.
Principal
1) The outstanding balance of a loan. 2) A party to
a real estate transaction. 3) The head of a real estate
firm.
Private Mortgage Insurance (PMI)
Insurance which covers the portion of a mortgage loan
above 80% thereby reducing the lenders risk to principal
loss in the event of a borrowers default. The insurance
coverage allows lenders to make higher loan-to-value
ratios (95% LTV).
Processing, Underwriting and Document Fees
Charges for the lender's services associated with making
the loan.
Property
The rights of ownership. The right to use, possess,
enjoy, and dispose of a thing in every legal way and
to exclude everyone else from interfering with these
rights. Property is generally classified into two groups,
personal property and real property.
Property Tax
A tax levied by the local municipality or county on
real and personal property.
Perorations
The allocation of expenses, such as taxes between buyer
and seller at closing based on the number of days the
property is owned during the month of closing.
Prorate
To divide in proportionate shares, such as taxes, insurance,
rent, or other items.
Planned Unit Development (PUD)
A housing development where there is a homeowners association
and common areas owned by the homeowners.
Purchase Money Mortgage
A mortgage used to finance the purchase of real property.
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