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Percentge
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A part or portion expressed in hundredths.
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PITI
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Principal, interest, taxes and insurance, which comprise your monthly mortgage payment.
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Planned Unit Development
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A zoning classification that allows flexibility in the design of a subdivision. PUD's include individually owned units as well as some common space that is jointly owned.
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PMI
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Insurance purchased by the borrower to insure the lender or the government against loss should you default. MIP, or Mortgage Insurance Premium, is paid on government-insured loans (FHA or VA loans) regardless of your LTV (loan-to-value). Should you pay off a government-insured loan in advance of maturity, you may be entitled to a small refund of MIP. PMI, or Private Mortgage Insurance, is paid on those loans which are not government-insured and whose LTV is greater than 80%. When you have accumulated 20% of your home's value as equity, your lender may waive PMI at your request.
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Points
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The amount paid either to maintain or lower the interest rate charged. Each point is equal to one percent (1%) of the loan amount (i.e., two points on a $100,000 mortgage would equal $2,000).
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Prepayment Penalty
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A fee paid to the lending institution for paying a loan prior to the scheduled maturity date.
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Private Mortgage
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A mortgage that is granted to a borrower with private monies, typically these types show on the borrowers credit report and may not appear on title.
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Property
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Land, including land improvements, structures, excluding movable machinery and equipment.
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Property Tax
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A government levy based on the market value (as assessed by the county assessor's office) or the property.
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Property Value
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How much a piece of real estate is worth based on the price a buyer and seller would negotiate.
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PUD
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A zoning classification that allows flexibility in the design of a subdivision. PUD's include individually owned units as well as some common space that is jointly owned.
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Purchase Price
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The amount of money paid for a property.
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Qualifying Ratios
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Comparisons of a borrower's debts and gross monthly income.
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Quit Claim Deed
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A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land. A quitclaim deed is often given to clear the title when the grantor's interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has.
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Quitclaim Deed
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A deed which transfers whatever interest the maker of the deed may have in the particular parcel of land. A Quitclaim Deed is often given to clear the title when the grantor's interest in a property is questionable. By accepting such a deed the buyer assumes all the risks. Such a deed makes no warranties as to the title, but simply transfers to the buyer whatever interest the grantor has.
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Recision
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The cancellation of a contract. When refinancing a mortgage on a principal residence the law gives the homeowner three days to cancel the contract.
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Refinancing
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Repaying an existing loan from the proceeds of a new loan on the same property.
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Regulation Z
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A federal regulation requiring creditors to provide full disclosure of the terms of a loan including the terms or the loan and the annual percentage rate (APR).
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Right to Rescission
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The legal right to void or cancel your mortgage contract in such a way as to treat the contract as if it never existed. Right of rescission is not applicable to mortgages made to purchase a home, but may be applicable to other mortgages, such as home equity loans.
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