Partial taking: The taking of part of an owner's property under the
laws of eminent domain.
Payment Cap: A
legal limit on the amount a monthly payment can increase on an
Permanent loan: The long-term mortgage on a property.
PITI: (Principal, Interest
and Taxes): When a buyer applies for a loan, the lender will calculate
the principal, interest, taxes and insurance. The figure is designed to
represent the borrower's actual monthly mortgage-related expenses. A new
home buyer may overlook these numbers.
Prepayment rights: Rights given to the borrower to make partial or
full payment of the total principal balance prior to the maturity date
Point : An amount equal to 1
percent of a mortgage (not sale price) that is paid at closing. A point is
usually considered to be prepaid interest. That is, interest paid up front
that represents the difference between the interest being charged on the
mortgage and the rate the lender wants to receive. Also referred to as
Interest Rate Buy down.
Power of Attorney: A
document that authorizes an individual to act on behalf of someone else.
Interest paid before it is due. At the close of a real estate transaction
borrowers usually pay for the interest on their loan that falls between the
closing period and the first monthly payment.
Lenders can impose a penalty on a borrower who pays a loan off before its
expected end date.
Principal payments: The return of invested capital to the lender.
Punch list: An itemized list documenting incomplete or unsatisfactory
items after the contractor has notified the owner that the home or unit is substantially complete.
Purchase offer: A
document that lists the price, conditions and terms under which the buyer is
willing to purchase the property.