Real Estate Glossary

• 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.

• 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.

• Plat - A map or chart of a lot, subdivision or community drawn by a surveyor showing boundary lines, buildings, improvements on the land, and easements.

• 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.

• Pre-approval - 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.

• Pre-foreclosure Sale - Allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.

• Premium - An amount paid on a regular schedule by a policyholder that maintains insurance coverage.

• Prepayment - Payment of mortgage loan, or part of it, before due date. Mortgage agreements often restrict the right of prepayment either by limiting the amount that can be prepaid in any one year or charging a penalty for prepayment.

• Prequalification - The process, usually by a lender, of determining how much money a prospective buyer will be eligible to borrow before a loan is applied.

• Principal - The amount of the loan upon which interest paid.

BIL's Designations
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