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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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