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GLOSSARY 'P' |
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1. |
Par:
Where the face value of the mortgage or bond is equal to its selling price.
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2. |
Partial Income Loan:
A mortgage loan where the borrower(s) verify a portion of their income.
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3. |
Personal Property:
Movable property.
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4. |
Pipeline:
Loan applications in process that have not closed yet.
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5. |
PITI:
An acronym for Principal, interest, taxes and insurance.
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6. |
Planned Unit Development (PUD):
A subdivision having lots or areas owned in common and reserved for the use of some or all of the owners of the separately owned lots.
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7. |
Point:
An amount equal to one percent of the principal amount of the investment or note.
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8. |
Portfolio:
The collection of loans held for servicing or investment.
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9. |
Portfolio Lender:
A lender who holds loans in their portfolio and does not sell in the secondary market.
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10. |
Power of Attorney:
An instrument authorizing a person to act on behalf of the person granting it.
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11. |
Pre Paid Interest:
Mortgage interest that is paid in advance of when it is due.
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12. |
Premium:
The amount payable for an insurance policy.
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13. |
Prepaids:
Expenses such as taxes, insurance and assessments which are paid by the buyer at closing.
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14. |
Prepayment Penalty / Prepayment Premium:
A charge the borrower pays the lender for the privilege to prepay the loan.
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15. |
Prequalification:
The process of establishing a borrower's qualification for a loan of a particular amount based on income and expenses.
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16. |
Primary Residence:
Residence which the owner physically occupies and uses as his/her home.
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17. |
Principal:
The balance of money lent, excluding interest.
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18. |
Private Mortgage:
A mortgage that is granted to a borrower with private moneys.
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19. |
Private Mortgage Insurance (PMI):
Insurance written by a private company protecting the lender against financial loss if the borrower defaults on the mortgage.
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20. |
Processing:
The completion of a mortgage loan application and supporting documents for underwriting.
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21. |
Profit / Loss (Write Off):
Also referred to as charge off.
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22. |
Profit and Loss Statement (P&L):
A financial statement provided by the applicant which reports the income and expenses for a business during a certain time period.
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23. |
Purchase Agreement:
Also referred to as a sales contract, earnest money contract, or agreement for sale.
A written document in which the purchaser agrees to buy certain real estate and seller agrees to sell under stated terms and conditions.
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24. |
Purchase Money Mortgage:
A mortgage given to a borrower who is purchasing a home.
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