PARGING
The cement coat applied to block foundations.

PARTIAL INTEREST
A shared ownership in a piece of property. May be divided among two or more parties.

PARTIAL PAYMENT
A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.

PERIODIC PAYMENT CAP
The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.

PERIODIC RATE CAP
The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.

PERSONAL PROPERTY
Owned items which are not permanently affixed to the land.

PERSONAL RESIDENCE
The primary domicile of a person or family.

PLANNED UNIT DEVELOPMENT (PUD)
A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity.

PLAT
A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.

POINT
A percentage of a mortgage amount (one point = 1 percent).

PRE-APPROVAL
The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.

PREFABRICATED
Any building or portion thereof which is manufactured and assembled off site, then erected on a property.

PREPAYMENT
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.

PREPAYMENT PENALTY
A fee that may be charged to a borrower who pays off a loan before it is due.

PRE-QUALIFICATION
Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.

PRIME RATE
The interest rate that banks and other lending institutions charge other banks or preferred customers.

PRINCIPAL
The amount owed on a mortgage which does not include interest or other fees.

PRINCIPAL BALANCE
The outstanding balance of principal on a mortgage. Does not included interest due.

PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI)
The most common constituents of a monthly mortgage payment.

PRIVATE MORTGAGE INSURANCE (PMI)
A form of mortgage insurance provided by private, non-government entities. Normally required when the LOAN TO VALUE RATIO is less that 20%.

PROPERTY
Any item which is owned or possessed.

PURCHASE 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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Real Estate Definitions