fbpx

Glossary

Knowledge is power and there’s no difference when it comes to obtaining a home loan! To help you on the journey to becoming an educated borrower, we’ve created this glossary of terms you’ll need to know during your home loan process.

 

All | # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are 7 names in this directory beginning with the letter P.
PITI
PITI is an acronym for the four components of a mortgage payment- Principal, Interest, Taxes and Insurance.

Points
Buying points, or buying down your rate, allows you to pay a percentage of your mortgage amount up front in exchange for a lower interest rate. One point equals 1% of your mortgage amount.

Pre-Approval
Pre-approval is the evaluation of a potential borrower by a lender to determine whether the borrower qualifies for a loan from the lender.

Primary Residence
A primary residence is the legal residence of a person. A person may only have one primary residence at any given time.

Principal
The principal is a component of your mortgage payment which is dedicated to paying back the amount of money you borrowed for your loan.

Processing Fees
A processing fee is a fee charged to process a loan application, including applications for credit checks, property appraisals, and basic administrative costs.

Property Tax
A property tax is a levy on the value of the property by government authority.