Term | Main definition |
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PITI | |
Prepaid Items | Charges on a mortgage loan that must be prepaid at closing by purchaser.
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Prepayment Penalty | Prepayment compensation. Most loans in the U.S. do not have a prepayment penalty which means that the borrower can pay off his loan at any time without any penalty interest. |
Principal | The total amount of money borrowed. |
Processing | The action of taking the loan thru the loan process with the lender. |
Promissory Note | The borrower makes an unconditional promise in writing to pay back the funds borrowed to the lending bank. |