| Payment
Schedule |
| |
A
schedule detailing the amount and due date of payments
required to be paid over the life of the loan. The dollar
figures represent principal, interest and private mortgage
insurance (if applicable). This schedule does not reflect
payment for taxes and insurance.
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|
| Points |
| |
An
amount payable to the lender paid by the borrower or seller
to increase the lender's effective yield and reduce the
interest rate. One point is equal to one percent of the loan
amount.
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|
| Preferred
Communication Method |
| |
A
process of communication used to respond to a borrowers loan
request.
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|
| Pre-qualification |
| |
A
request by a prospective loan applicant for a preliminary
determination of whether the prospective applicant would
likely qualify for credit under a lender's standards, or of
the amount of credit for which the prospective applicant
likely would qualify. Some lenders evaluate
pre-qualification requests through a procedure that is
separate from the lender's normal loan application process;
others use the same process. Pre-qualification is generally not
a commitment to lend.
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|
| Prepaid
Finance Charge |
| |
Certain
charges made in connection with the loan that must be paid
upon the loan closing. These charges are defined in
Regulation Z of Federal Register and entail, but not
inclusive to: Loan Origination Fee, Discount Points, Private
Mortgage Insurance and Tax Service Fee. Some loan fees are
excluded from the Prepaid Finance Charge such as appraisal
and credit report fees.
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|
| Primary
Borrower |
| |
An
individual who is listed first on the mortgage loan
application and is considered to be the primary borrower.
Some lenders allow a non-occupying co-borrower or co-signor
to be on the application. In this case, the borrower
occupying the property will need to be the primary borrower.
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| Primary
Home |
| |
A
property that the owner intends to occupy and will be their
primary residence. |
