Glossary

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

periodic cap
The maximum interest rate increase for a specific time period for a specific loan (adjustable mortgage) only.
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PITI
Principal, interest, taxes and (homeowner's) insurance.
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points
Fees levied by a lender payable at closing.
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prepaid items
Expenses of property which are paid in advance of the due date at the time of closing and are usually prorated upon sale, such as taxes, insurance, rent.
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prepayment penalty
A fee imposed by a lender on a borrower who wants to pay a mortgage loan in advance.
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principal
Amount of money owed on a mortgage, excluding interest.
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private mortgage insurance (PMI)
Mortgage insurance provided by nongovernmental insurers protecting lenders against loss if a borrower defaults.
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