A B C D E F G H I J K L M
N O P Q R S T U V X W Z

P

PITI
Principal, interest, taxes, and insurance. Also called monthly housing expenses.
Points (loan discount points)
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount (e.g. two points on a $100,000 mortgage would cost $2,000).
Power of Attorney
A legal document authorizing one person to act on behalf of another.
Prepaids
Expenses necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.
Prepayment Penalty
Money charged for an early repayment of debt. Prepayment penalties are allowed in some form (but not necessarily imposed) in 36 states and the District of Columbia.
Principal
The amount of debt, not counting interest, left on a loan.
Private Mortgage Insurance (PMI)
In the event that you do not have a 20 percent (set to adjust periodically) down payment, lenders will allow a smaller down payment - as low as 5 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will require an initial premium payment, and additional monthly fees of from .3 to .5 percent, depending on your loan's structure.
Promissory Note
A written unsecured note promising to pay a specified amount of money on demand, transferable to a third party.
Purchase Money Mortgage (PMM)
Seller financing as a part of the purchase price.