Mortgage Dictionary

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

FAQ

MORTGAGE DICTIONARY

HOMEBUYER'S GUIDE

REFINANCE GUIDE

HOMEPATH AND HOMESTYLE LOANS

EDUCATIONAL RESOURCES

Why Sky Real Estate 

You need mortgage professionals you can trust. You need a company that values honesty and integrity throughout the entire organization. You need mortgage planning specialists who give you their best consistently. You need to find strength, stability and opportunity—especially now. You need Grand Avenue Realty & Lendings!

When dealing with your home financing, we are not only working with one of your largest personal financial investments; we also are handling one of your biggest dreams. Since we work with matters so close to the heart, we serve you from ours.

Grand Avenue Realty & Lending can meet you where you are and help you where you are going. Let us provide you a mortgage without obstacles.

P

PAPER TRAIL

Copies of all paperwork to cover the lender should the borrower default on the loan. Depending on the lender, this may be required from the borrower. It can include copies of all checks, deposit slips, loan paperwork, forms to liquidate assets, etc.

PITI

An acronym for the four primary components of a monthly mortgage payment: principal, interest, taxes, and insurance (PITI).

POINT -- See DISCOUNT POINT

 

PREPAID EXPENSES

Needed to create an escrow account or to adjust the seller's existing escrow account; taxes, hazard insurance, private mortgage insurance and special assessments can be included in the prepaid expenses.

PRE-PAYMENT

The ability established in the mortgage agreement for a borrower to make advanced payments before their due date.

PRE-PAYMENT PENALTY

A fee that a borrower may be required to pay to the lender, in the early years of a mortgage loan, for repaying the loan in full or prepaying a substantial amount to reduce the unpaid principle balance.

PREQUALIFICATION

A preliminary assessment by a lender of the amount it will lend to a potential homebuyer. The process of determining how much money a prospective home buyer may be eligible to borrow before he or she applies for a loan.

PRINCIPAL

The amount of money owed on a loan, excluding interest. Also, the part of the monthly payment that reduces the remaining balance of a mortgage

PRIVATE MORTGAGE INSURANCE (PMI)

Insurance coverage required for expenses incurred if the borrower defaults on the loan. Borrowers typically are required to carry private mortgage insurance when they have a small percentage of a down payment to offer. An initial premium payment of 1% to 5% of your mortgage amount will be required. Private mortgage insurance also may necessitate an additional monthly fee depending on the borrower’s loan structure.