Northeast Funding Services

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Mortgage Glossary – P

Mortgage Glossary -P

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

Payment Cap
A contractual limit on the size of the monthly payment of an adjustable-rate mortgage or other variable rate loan.

Per Diem Interest 
Interest calculated per day

Periodic Cap 
Consumer safeguard, which limits the amount the interest rate on an adjustable rate mortgage (ARM), can change in an adjustment interval.

PITI 
Abbreviation for Principal, Interest, Taxes and Insurance — the components of a monthly mortgage payment.

Point
A point equals 1 percent of a mortgage loan. Some lenders charge “origination points” to cover expenses of making a loan. Some borrowers pay “discount points” to reduce the loan’s interest rate.

Power of attorney
A document in which the signer authorizes someone to conduct business in his or her name — signing title documents and checks, for example.

Pre-Approval 
The process of determining how much money a potential homebuyer could borrow.

Prepaid Expenses 
These expenses are included at closing. Taxes, insurance and assessments paid in advance of their due dates.

Prepaid Interest 
Interest that is paid in advance of when it is due. Typically charged to a borrower at closing to cover interest on the loan between the closing date and the first payment date.

Prepayment 
Full or partial repayment of the principal before the contractual due date.

Prepayment penalty
A lender’s charge to the borrower for paying off the loan before the end of the term.

Pre-Qualification 
A non-binding process of determining how much money a prospective homebuyer will be eligible to borrow prior to application for a loan. Information submitted during pre-qualification is subject to verification at application.

Principal
1. The amount of money borrowed;
2. The amount of money owed, excluding interest.

Private Mortgage Insurance (PMI) 
Insurance to protect the lender in case you, as the borrower, default on your loan. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home’s purchase price. Although PMI protects the lender, it is paid monthly by the borrower.

Property Taxes
Taxes figured on the value of property you own, including real estate, boats, cars, recreational vehicles and business inventories.

Purchase Agreement
A document in which a property’s buyer and seller approve the price and other terms of the transfer of the title. Also known as an agreement of sale, a purchase contract or a sale contract.

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

Purchase Pre-Qualify

Keep the dream alive by getting pre-qualified before you start looking for a home.

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VA Home Loans

100% Financing may be an option if you're a United States Veteran, Service Member, or not remarried spouse.

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Refinance / Debt Consolidation

Using the equity in your home to payoff other bills or needs is a great option.

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Reverse Mortgages

Stop fighting to stay afloat. Use the reverse mortgage to give you quality of life and eliminate your mortgage payment and other bills.

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Recent Posts

VA home loans for United States veterans offered by Northeast Funding Services

VA Loans: 10 Things To Know About The 100% Mortgage Program

VA Home Loans: A Benefit You’ve Earned

Reverse mortgage loans are provided by Northeast Funding Services

Reverse Mortgage Counseling

Reverse mortgage loans are provided by Northeast Funding Services

Are there different types of reverse mortgages?

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125 Wolf Road
Suite 217
Albany, NY 12205

518-782-1855

Email Us Bob@northeastfunding.com

638 E. Point Dr
Gilbert, SC 29054

Registered Mortgage Broker New York Department of Financial Services, Connecticut Department of Consumer Affairs, and South Carolina Department of Consumer Affairs NMLS ID#46813. Loans provided through third party providers.

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