-P-
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PITI
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Principal, Interest, Taxes, and Insurance. These are the
four components that typically make up a homeowner's mortgage
payment.
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Planned
Unit Development (PUD)
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a type of real estate development that includes common areas
and rules governed by an owners' association.
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Points
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prepaid interest equal to one percent of a mortgage loan.
Lenders generally offer loans with several combinations
of interest rates and points. Generally, the more points
paid, the lower the interest rate. The best choice of interest
rate/points may depend on how often you refinance.
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Principal
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the amount of debt, not including interest, on a loan.
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Pre-Qualification
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an initial evaluation by a lender of a borrower's credit
and financial situation to determine eligibility for a loan.
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Private
Mortgage Insurance (PMI)
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usually required by a lender if the down payment is less
than 20% of the sale price. PMI protects the lender in the
event of a default,
and is usually terminated when the homeowner has built up
20% equity.
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Mortgage Glossary © Copyright 2004, 2008
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