partial payment
A payment that is not sufficient to cover the scheduled monthly payment on a mortgage
loan. |
patent defects
Defects that should be obvious to the buyer when inspecting the property. |
permitted use
Land use classifications which are specifically allowed for in a designated category
under Land Use Bylaws. |
personal property
Any property that is not real property. |
P.I.T.
When you arrange for your mortgage, you can have the payments arranged so your
Principal, Interest and Taxes are made together. Your other choice is PI which
is Principal and Interest. If you choose PI, you are responsible to make the Land
Tax payments on your own. People choose PIT as form of payment so they do not
get a large lump sum bill when the taxes are due. |
power of attorney
A legal document that authorizes another person to act on one’s behalf. A power
of attorney can grant complete authority or can be limited to certain acts and/or
certain periods of time. |
prearranged refinancing
agreement
A formal or informal arrangement between a lender and a borrower wherein the lender
agrees to offer special terms (such as a reduction in the costs) for a future
refinancing of a mortgage being originated as an inducement for the borrower to
enter into the original mortgage transaction. |
preforeclosure sale
A procedure in which the investor allows a mortgagor to avoid foreclosure by selling
the property for less than the amount that is owed to the investor. |
prepayment
Any amount paid to reduce the principal balance of a loan before the due date.
Payment in full on a mortgage that may result from a sale of the property, the
owner's decision to pay off the loan in full, or a foreclosure. In each case,
prepayment means payment occurs before the loan has been fully amortized. |
prepayment penalty
A fee that may be charged to a borrower who pays off a loan before it is due.
|
pre-qualification
The process of determining how much money a prospective home buyer will be eligible
to borrow before he or she applies for a loan. |
prime rate
The interest rate that banks charge to their preferred customers. Changes in the
prime rate influence changes in other rates, including mortgage interest rates.
|
principal
(1)The amount borrowed or remaining unpaid. The part of the monthly payment that
reduces the remaining balance of a mortgage, or
(2)the person or company (seller) who employs an agent. |
principal balance
The outstanding balance of principal on a mortgage. The principal balance does
not include interest or any other charges. See remaining balance. |
private mortgage insurance
Mortgage insurance that is provided by a private mortgage insurance company to
protect lenders against loss if a borrower defaults. Most lenders generally require
MI for a loan with a loan-to-value (LTV) percentage in excess of 75%. |
promissory note
A written promise to repay a specified amount over a specified period of time.
|
property disclosure
statement
A statement made by the seller regarding the property condition and any other
information about the property that could be important to a buyer. |
public auction
A meeting in an announced public location to sell property to repay a mortgage
that is in default. |
purchase and sale agreement
A written contract signed by the buyer and seller stating the terms and conditions
under which a property will be sold.
|
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