P+I is an acronym for Principal and Interest that you pay on an amortizing loan, including mortgage loans. If your mortgage loan payments include property taxes and homeowners' insurance, the monthly payment amount is referred to as PITI.
PITI is an acronym for loan Principal, Interest, property Taxes and homeowner's Insurance. This describes all typical costs that make up a monthly mortgage payment.
Also called a periodic rate cap, this is the limit on the amount that a monthly loan payment for an adjustable rate mortgage (ARM) can increase. A periodic cap limits the amount of the increase at each adjustment period. A lifetime cap limits the amount that the monthly payment can increase during the term of the loan. A potential peril of payment caps is negative amortization. In the case of an adjustable rate mortgage with a payment cap, rising interest rates may cause the loan payment to be insufficient to cover even the interest portion of the scheduled payment. In this case, the unpaid interest may be added to the mortgage loan principal, if the loan agreement permits.
The payoff amount, included on the payoff statement, is the principal balance owed plus interest due, along with any late fees or charges on the account through the date of the payoff. Generally this is requested from your lender if you contract to buy a home from a seller with a mortgage on the property.
Transfers of funds between accounts that are not yet finalized. During a pending transfer, your accounts may reflect the balances that will change after the transfer is complete. This helps keep track of transfers you've requested, and also to maintain accurate records of your account balances.
Periodic interest rate cap
Also called a payment cap. See Interest rate cap.
A Planned Unit Development (PUD) is a real estate project in which the individual owners may have exclusive or shared rights to a common area in addition to the exclusive ownership of their own home and residential lot. PUDs may feature shared private streets, clubhouses, swimming pools, playgrounds, and hiking trails.
The prime rate is the interest rate that commercial banks in the U.S. charge their best customers. The prime rate is regularly used as a base rate, or index, to price a home equity credit line. For example, if a credit line is offered at 2 percentage points over prime, and prime is currently 7%, the credit line would have an interest rate of 9%.
This describes the total amount of funds available to the borrower at origination. A principal limit is calculated based on the maximum claim amount, loan type, and expected average interest rate. A reverse mortgage's principal limit may also be calculated based on the age of the borrower and net value of the borrower's property.
Property taxes are also called real estate taxes. These taxes are paid to the local taxing authority or municipality. The amount you pay can generally be deducted from your federal income taxes. Property taxes are often levied as a percentage of your home's assessed value. For example, if you pay 0.5% in property taxes of the assessed value, a home assessed at $250,000 would have a yearly property tax bill of $1,250. (This definition does not constitute tax advice; please consult a tax advisor regarding your situation.)
An estimate of the value of your real property. The property's appraisal or fair market value is most commonly used to estimate value. A certified appraiser determines an appraisal value.