"P" Listings - Mortgage Glossary
- Partial Recourse – Means the seller/lender has to reimburse the buyer/investor for an agreed-on portion of any losses...
- Partially Amortized Loan – A combination of an amortized loan and a straight term loan...
- Participation Mortgage – Sharing of an interest in an income property by a lender in addition to the base interest collected on a mortgage loan...
- Passive Income – Income received on real estate investment property or other assets that the owner...
- Passive Losses – Losses that an owner or real estate investor incurs due to assets he owns...
- Percentage Lease – A lease in which calls for a minimum rental payment and which often has a provision to collect a percentage of the sales...
- Percentage Point – One one-hundredth of the full amount of a mortgage loan. Used to define an interest rate...
- PITI (Principal, Interest, Taxes & Insurance) – The most common form of homeowner mortgage payment...
- PMI (Private Mortgage Insurance) – Something that lenders require a buyer to purchase and pay for monthly...
- Points – Fees paid to the lender by the buyer in order to purchase a lower interest rate over the amortization period of the mortgage loan...
- Population Growth – The natural result of a higher birth rate than death rate...
- Population Migration – Represents the tendency of certain segments of the population to flee...
- Potential Gross Rent – Maximum rent that could be charged. Does not take into account expenses...
- Portfolio Income – Sum total of passive income received from all assets owned...
- Positive Leverage – This happens when borrowing increases the return on the investor's equity...
- Pre-Approval – A method of giving the potential borrower an estimate of how much mortgage he or she can qualify for...
- Pre-Qualification – Similar to pre-approval. A process by which a lender runs some preliminary number on a potential buyer...
- Prepaids – Prorated expenses on a closing statement that have been prepaid by the seller...
- Prepayment Penalty – Monetary fee incurred when a borrower pays off a mortgage loan early...
- Present Value – The value of a future payment, calculated in today's terms, factoring in the most likely rate of inflation...
- Prime Rate – The lowest commercial interest rate charged by banks on short-term loans...
- Principal – Payments made on a mortgage loan which go directly to pay off the loan amount...
- Principal Balance – Amount of a mortgage loan which still remains to be paid off...
- Private Banking – A set of services intended for private customers. Usually features higher quality than the services offered to retail customers...
- Private Pay – This is housing in which tenants pay the going rate for rent, utilities and services...
- Pro Forma – A financial projection based on assumptions...
- Promissory Note – A promise to pay...
- Property Grade – Most lenders will classify a property by its age and needed maintenance...
- Property Tax – Yearly tax on property assess by county-level government...
- Property Type – Residential, commercial, medical, office, industrial, hospitality, multi-use, multifamily...
- Psychographics – Any attributes relating to personality, values, attitudes, interests, spending habits or lifestyles...
- PUD (Planned Unit Development) – A multi-homesite development that will include utilities such as water and sewers...
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