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.
There are currently 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 exact 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.