Oconee County Real Estate
Real Estate Terms | P
Plat
A map or chart of a lot, subdivision or community drawn
by a surveyor showing boundary lines, buildings, improvements
on the land, and easements.
P.M.I. (Private Mortgage Insurance)
Insurance which covers a portion of the first mortgage
allowing the lender to offer more lenient terms to a
borrower.
Points
Sometimes called "discount points." A point is one percent
of the amount of the mortgage loan. For example, if
a loan is for $25,000, one point is $250. Points are
charged by a lender to raise the yield on his loan at
a time when money is tight, interest rates are high,
and there is a legal limit to the interest rate that
can be charged on a mortgage. Buyers are prohibited
from paying points on HUD or Veterans' Administration
guaranteed loans (sellers can pay, however). On a conventional
mortgage, points may be paid by either buyer or seller
or split between them.
Prepayment
Payment of mortgage loan, or part of it, before due
date. Mortgage agreements often restrict the right of
prepayment either by limiting the amount that can be
prepaid in any one year or charging a penalty for prepayment.
The Federal Housing Administration does not permit such
restrictions in FHA insured mortgages.
Prepayment Penalty
A penalty within a note, mortgage, or deed of trust
imposing a penalty if the debt is paid in full before
the end of its terms.
Principal
The basic element of the loan as distinguished from
interest and mortgage insurance premium. In other words,
principal is the amount upon which interest is paid.
Purchase Agreement
An agreement between buyer and seller denoting price
and terms of the sale.
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