P-R

P

• Partial Claim: a loss mitigation option offered by the FHA that allows a borrower, with help from a lender, to get an interest-free loan from HUD to bring their mortgage payments up to date.
• PITI: Principal, Interest, Taxes, and Insurance - the four elements of a monthly mortgage payment; payments of principal and interest go directly towards repaying the loan while the portion that covers taxes and insurance (homeowner's and mortgage, if applicable) goes into an escrow account to cover the fees when they are due.
• PMI: Private Mortgage Insurance; privately-owned companies that offer standard and special affordable mortgage insurance programs for qualified borrowers with down payments of less than 20% of a purchase price.
• Pre-approve: lender commits to lend to a potential borrower; commitment remains as long as the borrower still meets the qualification requirements at the time of purchase.
• Pre-foreclosure sale: allows a defaulting borrower to sell the mortgaged property to satisfy the loan and avoid foreclosure.
• Pre-qualify: a lender informally determines the maximum amount an individual is eligible to borrow.
• Premium: an amount paid on a regular schedule by a policyholder that maintains insurance coverage.
• Prepayment: payment of the mortgage loan before the scheduled due date; may be Subject to a prepayment penalty.
• Principal: the amount borrowed from a lender; doesn't include interest or additional fees.

R

• Radon: a radioactive gas found in some homes that, if occurring in strong enough concentrations, can cause health problems.
• Real estate agent: an individual who is licensed to negotiate and arrange real estate sales; works for a real estate broker.
• REALTOR: a real estate agent or broker who is a member of the NATIONAL ASSOCIATION OF REALTORS, and its local and state associations.
• Refinancing: paying off one loan by obtaining another; refinancing is generally done to secure better loan terms (like a lower interest rate).
• Rehabilitation mortgage: a mortgage that covers the costs of rehabilitating (repairing or Improving) a property; some rehabilitation mortgages - like the FHA's 203(k) - allow a borrower to roll the costs of rehabilitation and home purchase into one mortgage loan.
• RESPA: Real Estate Settlement Procedures Act; a laws
• Settlement: another name for closing .
• Special Forbearance: a loss mitigation option where the lender arranges a revised repayment plan for the borrower that may include a temporary reduction or suspension of monthly loan payments.
• Subordinate: to place in a rank of lesser importance or to make one claim secondary to another.
• Survey: a property diagram that indicates legal boundaries, easements, encroachments, rights of way, improvement locations, etc.
• Sweat equity: using labor to build or improve a property as part of the down payment.