Partial Payment

A payment does not fully pay for the scheduled payment on a mortgage loan. Most lending institutions do not accept anything less than full payment, unless there is a valid reason and the borrower makes arrangements with the lender.

Payment Change Date

This is the date an adjustable rate mortgage or a GPM (graduated payment mortgage) goes into effect and monthly payment amount is changed. Usually this date occurs one month after the adjustment date for the interest rate.

Periodic Payment Cap

This is a limit dollar amount that a monthly payment fluctuate up or down with an adjustment period for an ARM; where minimum payment and the interest rate change independently or each other.

Periodic Rate Cap

This is a limit interest rate can fluctuation, either up or down, during an adjustment period for an adjustable rate mortgage (ARM).

Personal Property

This is any property not considered to be real property.

PITI

An abbreviation for principal, interest, taxes, and insurance. An impounded loan includes all these elements, and is a very common loan format. Mortgage lenders require payment for all these to ensure protection for the loan.

PITI reserves

This is an amount held in reserve, following down payment plus closing costs for a mortgage loan. This reserve is equivalent to what the borrower would pay for principal, interest, taxes and insurance for a specific number of months.

Planned Unit Development ( PUD )

This is an ownership type individuals own the unit or building, however, common areas are owned jointly by the members of the development. This is not the same as a condominium, where an individual owns the airspace for a unit, however, all common areas and buildings are held in joint ownership with all members of the development.

Point

For a mortgage this is is equal to 1% of the total amount being financed.

Power Of Attorney

A legal document authorizing one person to act on another person's behalf. This document can limit the authority to specific acts or time periods, or it can grant a complete authority.

Pre-Approval

This term is used when a borrower completes a loan application with information about income, debts, and savings and has been approved by an underwriter. The pre approval is made for a specific loan amount and most likely interest rate for the loan, and also estimates the property tax and insurance. This pre approval applies only to a specific borrower and the property involved must be approved by lending underwriters.

Prepayment

This is an amount that is used to reduce the principal balance of a mortgage loan prior to the due date.