Mortgage Glossary
There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.
O
Origination Fee
A fee charged by a lender as a way to cover processing expenses or to increase their profitability for originating a mortgage loan. Most commonly, the origination fee is expressed as a percent of the loan amount. For our comparison purposes, the origination fee is considered to be a lender fee.
Other Fees
One of our goals is to provide you with apples to apples comparison of all the fees charged by our top lenders to obtain a loan. Fees listed as other fees cannot easily be compared to any standard fee type and should be evaluated and compared separate from the standard fees.
Owner Financing
A real property purchase transaction in which the seller provides the financing
P
P&I
The monthly principal and interest payment required when repaying a mortgage in accordance with its terms.
Package Mortgage
A mortgage agreement in which the principal amount loaned is increased because personal property as well as real property serve as security.
Pad Site
A single freestanding retail site, often adjacent to a mall or larger shopping center.
Paper
Credit given, evidenced by a written obligation with property as collateral.
Partial Payment
A loan payment that is not great enough to cover the scheduled monthly payment on a mortgage.
Payment Change Date
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM). The payment change date usually occurs in the month immediately after the adjustment date.
Periodic Payment Cap
On an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase during a single adjustment period.
Periodic Rate Cap
On an adjustable-rate mortgage (ARM), a limit on the amount that the interest rate can increase during a single adjustment period.
Personal Income
Economic indicator that measures the total income of all Americans from all sources, and is reported both before and after taxes. Also reports personal spending and personal savings. The level of spending can be used as an indicator of consumer optimism. Frequency: monthly. Source: Commerce Department.
Personal Property
Any and all property that is not real property.
PITI
(P)rincipal, (I)nterest, (T)axes, and (I)nsurance is a reference to the total monthly payment required to repay a mortgage in accordance with its term as well as monthly escrow payments for taxes and insurance.
Planned Unit Development (PUD)
A housing project that includes common property that is owned and maintained by a homeowners' association for the benefit and use of the individual unit owners.