Package Mortgage: Mortgage that
covers both real estate and personal property.
Paper: A deed, mortgage, or land
contract offered in lieu of cash.
Partial Release: A clause in a mortgage
that allows some part of the property that the loan
is secured against to be freed from serving as collateral.
Participation Mortgage: A mortgage
that allows the lender to share in the income earned
on the property, or in the proceeds from the sale.
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..
Permanent Loan: A long term mortgage
or loan. This term is typically used to describe the
loan that is used to pay off a construction loan.
Permit: A document issued by a regulatory
body that allows the holder to perform a particular
action.
PITI: Principle, Interest, Taxes, and Insurance.
Planned Unit Development (PUD): A
zoning classification that allows flexibility in the
design of a subdivision. Can include both public,
common areas and private lots.
Plat: A plan of a specific land area.
Plat Book: A public record book contains
maps of land. Shows the borders of land marking where
it is divided into blocks, streets and lots.
Points: Fees paid to lenders. A point is
a percentage of the loan value. 1 point is 1% of the
total loan value.
Portfolio Loan: A loan that is held
as an investment by a bank or savings and loan, and
is not sold to investors.
Power of Attorney: A written statement
authorizing one person to act on the behalf of another.
The person does not have to be an attorney.
Prepaid Interest: Interest that is
charged on a loan that must be paid at closing that
covers the interest that will be accrued between the
date of closing and the date of the first payment.
Prepayment: Payment of all or part
of a loan before it is due.
Prepayment Penalty: A fee that a
borrower may have to pay if he pays off the loan too
soon.
Primary Mortgage Market: Companies
that originate and service mortgage loans.
Prime Rate: The interest rate charged
by the Federal Reserve Bank for loans to other banks.
Principal
Private Mortgage Insurance (PMI):
PMI is insurance that a borrower may be required to
purchase in the case that they have a down payment
of less then 20% of the purchase price.
Probate: A process in a court of
law which establishes the validity of the will of
a dead person.
Purchase Money Mortgage: A mortgage
used to obtain funds to purchase a property.
Property Tax: A government tax based on the
appraised market value of a property.
Public Sale: Property auction that
takes place after notifying the public.
Purchase Agreement: See Agreement
of Sale
