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Parcel |
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A piece of land or property under one ownership. Parcels are created when a single large property is sub-divided into many smaller pieces of property. |
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Paritition |
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The forced division of land among parties who were formerly co-owners. A partition suit may ask to divide the land or if that is not practical, sell the land and divide the proceeds. |
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PAR |
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A situation where the face value of a mortgage (or bond) principal equals its actual selling price -- that is, with no discount or premium. |
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Pay-Off Amount |
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A total balance, mount of a full payment on existing loan or lien. |
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Payoff Schedule |
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The dollar figure in the Payment Schedule represent the principal, interest, plus Private Mortgage Insurance (if applicable) over the life of the loan. These figures will not reflect taxes and insurance escrows or any temporary buydown payments contributed by the seller. |
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Per-Diem Interest |
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Interest charges that cover the period of time—usually a matter of days, or a few weeks—between when you close on your home, and the first day of the first month of your regular loan payments. |
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Permanent Loan |
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A long term mortgage, usually ten years or more. Also called an end loan. |
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Piggyback Financing |
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Two different mortgagors participating in the same loan. |
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Pipeline |
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Term used to express loan applications in process up until closing or until the mortgage is sold; used when analyzing mortgage loan inventory or commitment coverage. |
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Pledged Account Mortgage (PAM) |
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- Money is placed in a pledged savings account and this fund plus earned interest is gradually used to reduce mortgage payments.
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Private Mortgage Insurance (PMI) |
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In the event that you do not have a 20 percent down payment, lenders will allow a smaller down payment - as low as 3 percent in some cases. With the smaller down payment loans, however, borrowers are usually required to carry private mortgage insurance. Private mortgage insurance will usually require an initial premium payment and may require an additional monthly fee depending on you loan's structure. |
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Pro Forma Statement |
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Latin word meaning according to form; a projection of anticipated income, expenses, and cash flow from an investment enterprise. |
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Prospectus |
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- A proposal or offering in conjunction with the sale of improved or unimproved property that outlines all aspects of the offer. Regulations of the Securities and Exchange Commission require many real estate offerings to be described by a detailed prospectus.
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Purchase Agreement |
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An unconditional sales contract that defines the terms and conditions under which real property is conveyed. |
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Purchase Money Mortgage (PMM) |
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Seller financing as a part of the purchase price. |
