Dolphin Realty, Inc.

Real Estate Glossary

periodic interest rate cap
Limits the increase and decrease amounts on the note rate of an adjustable rate mortgage at each rate adjustment period.
PITI
A payment that combines Principal, Interest, Taxes and Insurance.
Planned Unit Development (PUD)
A project, usually consisting of a large parcel of land, that consists of both private and common areas and is maintained by a homeowners' association.
point
One percent of the amount of a mortgage is one point.
power of attorney
A legal document authorizing a person to act on another person's behalf. This can apply to certain acts for certain periods, or can grant complete authority to the individual.
preapproval
A borrower usually completes a loan application which is then reviewed and approved by an underwriter. The approval applies to a specific loan amount before a property is chosen.
prepayment
Any payment made on a loan before the due date of the payment. Also applies to payments that are larger than the amount due.
prepayment penalty
If a loan is payed off before it is due, the terms of that loan may require a penalty payment.
prime rate
The lowest commercial interest rate available on short term loans. This rate is only made available to a bank's most preferred customers.
promissory note
A promise made in writing to repay a specific amount over a specific period of time.
purchase agreement
A contract in which a buyer and seller agree to the terms of a real property sale.
purchase money transaction
The purchase of a property with money or something of equivalent value to the buying price.
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