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P&IAbbreviation for principal and interest.
Payment CapSee also: Cap
PITIAbbreviation for principal, interest, taxes and insurance.
PITIOAbbreviation for principal, interest, taxes, insurance and other monthly non-housing costs.
PointsCharges levied by the lender based on the loan amount. Each point equals one percent of the loan amount; for example, two points on a $100,000 mortgage equals $2,000. Discount points are used to buy down the interest rate. Points can also include a loan origination fee, which is usually one point.
Pre-qualificationTentative establishment of a borrower's qualification for a mortgage loan amount of a specific range, based on the borrower's assets, debts, income, employment status and credit history.
Prime RateThe interest rate commercial banks charge their most creditworthy customers.
PrincipalThe amount of the entire mortgage loan, not counting interest.  Also, as a part of PITI, the amount of the monthly mortgage payment which does not include the interest, insurance, and taxes.
Private Mortgage Insurance (PMI)See also: Mortgage Insurance
Property AppraisalSee also: Appraisal
Property TaxThe amount which the state and/or locality assesses as a tax on a piece of property.
ProrateTo proportionally divide amounts owed by the buyer and the seller at closing.
Last Modified: 12/11/2020 3:47 PM