Open Site - Business: Finance and Insurance: Mortgages: Terminology: P

Top: Business: Finance and Insurance: Mortgages: Terminology: P

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Partial Claim

a loss mitigation option offered by the FHA that allows a borrower, with help from a lender, to get an interest-free loan from HUD to bring their mortgage payments up to date.

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PITI

Principal, Interest, Taxes, and Insurance - the four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.

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PMI

Private Mortgage Insurance; privately-owned companies that offer standard and special affordable mortgage insurance programs for qualified borrowers with down payments of less than 20% of a purchase price.

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Pre-approve

lender commits to lend to a potential borrower; commitment remains as long as the borrower still meets the qualification requirements at the time of purchase.

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Pre-foreclosure sale

allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.

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Pre-qualify

a lender informally determines the maximum amount an individual is eligible to borrow.

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Premium

an amount paid on a regular schedule by a policyholder that maintains insurance coverage.

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Prepayment

payment of the mortgage loan before the scheduled due date; may be Subject to a prepayment penalty.

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Principal

the amount borrowed from a lender; doesn't include interest or additional fees.