Glossary

Glossary of terms used on this site

There are 105 entries in this glossary.

All | A | B | C | D | E | F | G | H | I | J | L | M | N | O | P | R | S | T | U | V

Term	Definition
PITI	The components of a monthly mortgage payment including principal, interest, taxes, and insurance. It is considered your total monthly housing expense, but does not include homeowner’s association dues.
Points	See DISCOUNT POINTS.
Prepayment Penalty	An extra cost to the borrower if the loan is repaid before it is due. The prepayment penalty compensates the lender for the loss of interest that would have been earned had the loan remained in effect for its full term.
Primary Residence	A residence which the borrower intends to occupy as the principle residence (where they will live most of the time).
Principal	The amount owed on a loan not including interest.
Private Mortgage Insurance (PMI)	This protects the lender against a loss if a borrower defaults on the loan. It is usually required for loans in which the down payment is less than 20 percent of the sales price or, in a refinancing, when the amount financed is greater than 80 percent of the appraised value.