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| P&L |
An abbreviation for profit and loss statement. See PROFIT AND LOSS STATEMENT (P & L)
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| PAR |
The principal amount of a mortgage with no premium or discount.
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| Partnership |
An agreement between 2 or more individuals or entities to go into business or invest together. Either partner may bind the other, within the scope of the partnership. Each partner is liable for all the partnership's debts.
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| Pay Option Arm Program |
Need flexibility in your mortgage payment approach. We now have a pay option arm program. It’s a flexible program that gives you four different options on how to pay your monthly mortgage. This is great for customers who have seasonal or commission based cash flow.
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| Pay Stub |
The portion of the paycheck the employee retains for his/her records. The pay stub verifies pay-period and year-to-date gross and net earnings.
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| Payment Change Date |
On an adjustable rate mortgage, this is the date the new mortgage payment is effective after an interest rate change. It is usually the 1st of the month following the interest rate change date.
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| Payment Schedule |
This schedule outlines the number of payments due, the amount of each payment and the date payments are due.
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| Pension Award Letter |
Documentation specifying the frequency and amount of pension payments an individual is eligible to receive.
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| Periodic Adjustment Cap |
This cap limits how much the interest rate can change in the future on an adjustable-rate mortgage.
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| Permanent & Non-Permanent Resident Aliens |
Drew Mortgage offers many programs for borrowers who may not be U.S. Citizens. If you’re a permanent resident alien with a green card or a Non-Permanent Resident Alien and do not have the green card, we can find a loan for you. We have many Fixed and Adjustable Rate Programs and even have the Drew Portfolio Loans that will fit these types of borrowers.
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| Piggyback Loan |
See SECONDARY FINANCING
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| PITI |
Acronym for principal, interest, taxes and insurance. See PRINCIPAL, INTEREST, TAXES & INSURANCE (PITI)
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| Plaintiff |
An individual or entity who files a legal action against another.
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| Planned Unit Development (PUD) |
A single-family residence located in a community with association dues and other required monthly payments.
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| Plat Map |
A map dividing a parcel of land into lots, as in a subdivision. For example, a Title/Commitment report and an appraisal report will provide a plat map of the subject property, which shows the location of the property within the subdivision.
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| Point of Reference |
A starting point used to put a customer's canceled checks or mortgage statements in chronological order by establishing either the date and amount of the last mortgage payment made or the date and amount of the next mortgage payment due.
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| Points |
Each point is an amount equal to 1% of the principal amount of an investment or note.
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| Portfolio Loan w/ No Money Down |
Drew Mortgage understands not all borrowers have the best credit or a high down payment for a home. That’s why we created our own Portfolio loan programs, which allow for higher borrowing, no down payments in some cases and programs which also all-low doc programs for those who may need it. We underwrite these programs based on a “common sense” approach. If you think that you may not be able to get into a new home or refinance due to some past credit problems- ask us about our flexible portfolio loan programs- you will be glad you did.
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| Power of Attorney |
An authority by which 1 person authorizes another to act on his or her behalf. A power of attorney can be limited to specific areas or be general.
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| Preliminary Title Report (Prelim) |
A report showing all current claims against a property before a sale or loan transaction and identifying those items that must be removed to obtain a 1st lien position. After completion of the transaction, a title insurance policy is issued. See TITLE COMMITMENT
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| Prepaid Finance Charge |
The finance charges charged at closing exclusive of interest. Examples include points, processing and application fees, tax certification, etc.
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| Prepaid Interest Charge |
The portion of interest, added on at loan closing, which covers the time period between funding and the beginning of the first 30-day period covered by the first payment. For example, if the loan closed on 2/15, the first payment due on 4/1 retroactively pays interest from 3/1 to 4/1. The prepaid interest would cover the period from 2/15 to 2/28.
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| Prepayment Penalty |
A charge which is assessed when the loan is paid before it's due to compensate the investor for the loss of anticipated interest income.
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| Primary Customer |
The primary borrower on the loan.
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| Primary Residence |
The property in which the customer resides the majority of the time.
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| Prime Rate Index |
A rate index which is the prevailing rate that banks charge to lend money to corporations.
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| Principal |
The amount of debt on a mortgage, not including interest. The face value of a note, mortgage, etc.
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| Principal and Interest (P&I) |
This refers to the principal and interest portions of a monthly mortgage payment.
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| Principal, Interest, Taxes & Insurance (PITI) |
The total of the monthly mortgage payment due, which includes all principal, interest, taxes and insurance.
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| Private Mortgage Insurance (PMI) |
Insurance against a loss by a lender normally required in the event the lender has lent more than 80% of the value of the property securing the loan. The premium is paid by the borrower and is included in the mortgage payment.
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| Pro Rate |
To divide in proportionate shares, such as taxes, insurance, rent or other items that buyer and seller share as of the time of closing, or other agreed upon time.
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| Profit and Loss Statement (P&L) |
A statement documenting business revenues and expenses for a specified time period to establish whether a business gained a profit or suffered a loss.
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| Promissory Note |
A written promise by the borrower to pay a debt owed, within a specified time, to the holder of the note under conditions mutually agreed upon.
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| Property Taxes |
Generally, a tax levied on both real and personal property. The amount of the tax is dependent on the value of the property.
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| Purchase Agreement |
The agreement made between the buyer and seller of a property, containing the purchase price and contingencies of the sale.
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