Package Mortgage

Mortgage covering both real and personal property.

Paper

A mortgage, deed of trust or land contract which is given instead of cash.

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.

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.

Pledged Account Mortgage (PAM)

 Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.

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 be 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.

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.

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 Insurance (PMI)

Insurance which insures the upper portion of a mortgage loan 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).

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

The outstanding balance of a loan.

Principal and Interest

The principal and interest is the monthly payment needed to repay the mortgage loan over a predetermined period. After deducting the monthly taxes, insurance, and debt from the Total Monthly Obligation, the mortgage payment is calculated based on a 30 year fully amortizing loan and the current 30 year mortgages rates of Guaranty Mortgage with a 1 point origination fee. You may input a new rate and term.

Private Mortgage Insurance (PMI)

Insurance which insures the upper portion of a mortgage loan therby reducing the lender's 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 Tax

A tax levied by the local municipality or county on real and personal property.

Prorations

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.