Partial Release
The release of property that may be used as collateral.
Permanent Loan or Mortgage
A mortgage that is kept for a substantial amount of time.
Permit
Issued by the government and used to take a form of consent, e.g. an occupancy permit grants permission to the owner to occupy or rent property.
PITI (Principal, Interest, Taxes, and Insurance)
All of these can be joined into one monthly mortgage payment.
Planned Unit Development (PUD)
A zoning classification which allows some flexibility in the design and construction of the individual units in a development. Units are individually owned but there are common areas owned by the group.
Plat
Land area that is mapped or planned.
Plat Book
The public record of divisions of land showing specific blocks, roads, and other necessary measurements of the land.
Points
Origination and discount points paid to a lender, e.g. 2 points = 2% of the total loan. If a a loan is $200,000 then 2 points is $4,000.
Portfolio Loan
A type of loan that is held by the bank and is not to sold on the secondary mortgage market.
Power of Attorney
A document authorizing someone (who does not need to be an attorney) the authority to act in the best interest of another.
Prepaid Interest
Prepaid interest is the interest charged to borrowers at closing to pay for the cost of borrowing for the remainder of the current month.
Prepayment
The ability to make a principal payment in full or part before the due date of the loan, e.g. advance monthly payments, refinance...
Prepayment Penalty
Fees assessed when the borrower pays of a mortgage before it is due.
Primary Mortgage Market
Companies like banks, savings and loans, credit union, etc. that originate and service mortgage loans make up the primary mortgage market.
Prime Rate
Short term loans with very low interest rates are often offered at the lowest commercial interest rate available. These loans are normally only available to the most credit worthy customers.
Principal
Balance owed on a loan.
Private Mortgage Insurance (PMI)
Some lenders will allow a down payment smaller then the one normally required if the borrower purchases private mortgage insurance which guarantees the repayment of the mortgage under certain terms.
Property Tax
Government tax that is assigned to a property based on the county's assessment value.
