Quickloans Glossary

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P

PITI
Principal, interest, taxes, and insurance. Also called monthly housing expense.

POINTS (LOAN DISCOUNT POINTS)
Prepaid interest assessed at closing by the lender. Each point is equal to 1 percent of the loan amount.

POWER OF ATTORNEY
A legal document authorizing one person to act on behalf of another.

PREPAIDS
Expenses necessary to create an escrow account or to adjust an existing account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.

PREPAYMENT PENALTY
Fee charged for early repayment of some types loans. Usually 6 months interest on 80% of current balance.

PRINCIPAL
The balance, not including interest, left on a loan.

PRIVATE MORTGAGE INSURANCE (PMI)
For loans over 80% loan-to-value. Lenders will loan up to 95% in some cases. With the higher LTV loans, borrowers are required to carry private mortgage insurance, which requires an initial premium and may require an additional monthly fee depending on your loan's structure.

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