Real Estate Glossary

Real Estate Law Glossary

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There are currently 6 names in this directory beginning with the letter P.
Principal, interest and taxes. Together these make up the regular payment on a mortgage if you elect to include property taxes in your mortgage payments.

Pre-approval of a Mortgage
This is usually given in advance of the formal mortgage application. In pre-approving a mortgage, a lender tells a potential buyer approximately how much money the buyer can afford to borrow.

Pre-payment Penalty
An interest penalty imposed in accordance with the terms of the mortgage when a mortgage is paid off before it comes due.

Pre-payment Privilege
A mortgage feature that allows the borrower to repay a portion or all of the principal balance with or without penalty. This privilege is frequently restricted to specific amounts and times.

The mortgage amount initially borrowed, or the portion still owing on the mortgage. Interest is calculated on the principal amount.

The purchaser is the person buying the home.