Southwest Florida Real Estate
Real Estate and Mortgage Terms Glossary
Real Estate and Mortgage transactions have languages all their own. Since most people don't use these terms on any type of a regular basis, we are providing this real estate and mortgage term glossary as a quick and easy reference for you to use. Rather than being unsure about a terms meaning, you can check here first. Of course, if you need a more in-depth understanding, please contact us directly and we'll be happy to assist you.
Terms - Letters P to Q
A shared ownership in a piece of property. May be divided among two or more parties.
A payment of less than the regular monthly amount. Usually, a lender will not accept partial payments.
PERIODIC PAYMENT CAP
The limit on how much regular monthly payments on an Adjustable Rate Mortgage can change during one adjustment period.
PERIODIC RATE CAP
The limit on how much the interest rate on an Adjustable Rate Mortgage can change during any one adjustment period.
Owned items which are not permanently affixed to the land. See Real Property.
The primary domicile of a person or family. See Florida State Information.
A monthly mortgage payment that includes principal, interest, taxes and insurance.
PLANNED UNIT DEVELOPMENT (PUD)
A coordinated, real estate development where common areas are shared and maintained by an owner's association or other entity. See Condo and HOA Documents.
A plan or chart of a piece of land which lays out existing or planned streets, lots or other improvements.
A percentage of a mortgage amount (one point = 1 percent). See Locking Interest Rates.
POTENTIAL GROSS INCOME
The total annual income a rental property could produce if it were occupied 100% of the time with no vacancies.
POWER OF ATTORNEY
A written instrument authorizing one person to act as the agent of another to the extent indicated in the instrument.
The process of applying for a mortgage loan and becoming approved for a certain amount at a certain interest rate before a property has been chosen. Pre-approval allows the borrower greater freedom in negotiations with sellers.
Abusive lending practices that include making mortgage loans to people who do not have the income to repay them or repeatedly refinancing loans, charging high points and fees each time.
Any building or portion thereof which is manufactured and assembled off site, then erected on a property.
Payment made that reduces the principal balance of a loan before the due date and before the loan has become fully amortized.
A fee that may be charged to a borrower who pays off a loan before it is due.
Less formal that pre-approval, pre-qualification usually means a written statement from a loan officer indicating his or her opinion that the borrower will be able to become approved for a mortgage loan.
The interest rate that banks and other lending institutions charge other banks or preferred customers. See Interest Rates.
The amount owed on a mortgage which does not include interest or other fees.
The outstanding balance of principal on a mortgage. Does not included interest due.
PRINCIPAL, INTEREST, TAXES, AND INSURANCE (PITI)
The most common constituents of a monthly mortgage payment.
PRIVATE MORTGAGE INSURANCE (PMI)
A form of mortgage insurance provided by private, non-government entities. Normally required when the Loan to Value Ratio is less that 20%. See Loan Closing Costs.
The person whose efforts are the cause of an executed sales contract, regardless of who actually writes the contract.
PROFIT AND LOSS STATEMENT
A detailed statement of the income and expenses of a business, commonly known as a Profit & Loss, operating statement or income statement.
Any item which is owned or possessed.
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
Any building designed to accommodate four families.
Two ratios used in determining credit worthiness for a mortgage loan. One is the ratio of a borrower's monthly housing costs to monthly income. The other is a ratio of all monthly debt to monthly income.
A legal document which transfers any ownership an individual has in a piece of property. Often used when the amount of ownership is not known or is unclear.