Package Mortgage
Mortgage covering both real and personal property.
Pad - Ground Tenant Type
Characterizes the tenant type based on usage of the leased area; a parcel of land subdivided from a larger parcel upon which a lessee constructs a building; pad sites are typically located around shopping malls and in high-scale retail areas. Generally, pad sites are located close to a street or freeway or close to an entrance or exit of a mall or shopping center.
Pad - Improved Tenant Type
Characterizes the tenant type based on usage of the leased area; a parcel of land subdivided from a larger parcel upon which is improved a freestanding building or buildings; pad sites are typically located around shopping malls and in high-scale retail areas. Generally, pad sites are located close to a street or freeway or close to an entrance or exit of a mall or shopping center.
A mortgage, deed of trust or land contract which is given instead of cash.
Parking Income
Income from parking and garage operations associated with the property.
Parole Evidence
The legal rule which prevents previous oral or written negotiations to a signed contract from changing the contract.
Partial Recourse
Identifies whether the lender accepts partial-recourse loan requests from the lender.
A release of a portion of property covered by a mortgage.
Percent Expenses
Percentage Lease
Commonly used for large retail stores. Rent payments include a minimum or "base rent" plus a percentage of the gross sales "overage". Percentages generally vary from one to six percent of the gross sales depending on the type of store and sales volume.
Percentage Rent
Rent, computed as a percentage of retail sales above a breakpoint, paid by tenants under typical retail leases. Usually paid instead of or in addition to a specified minimum base rent; commonly used for large retail stores. Rent payments include a minimum or "base rent" plus a percentage of the gross sales "overage." Percentages generally vary from 1% to 6% of the gross sales depending on the type of store and sales volume. Overage rent is percentage rent paid over and above the guaranteed minimum rent or base rent; calculated as a percentage of sales in excess of specified breakeven sales volume.
Percentage Subsidized
Identifies the percentage of scheduled gross rental income that is subsidized.
A mortgage loan, usually covering development costs, interim loans, construction loans, financing expenses, and marketing, administrative, legal, and other costs. This loan differs from the construction loan in that financing goes into place after the project is constructed and open for occupancy. It is a long-term obligation, generally for a period of 10 years or more.
A mortgage on completed construction on the same property under one mortgage or trust deed.
The allocation of expenses, such as taxes between buyer and seller at closing based on the number of days the property is owned during the month of closing.
Property which is movable. All property is either personal, realty or mixed.
Phase I
An assessment and report prepared by a professional environmental consultant which reviews the property - both land and improvements - to ascertain the presence or potential presence of environmental hazards at the property such as underground water contamination, PCB’s, abandoned disposal of paints and other chemicals, asbestos and a wide range of other potentially damaging materials. This Phase I Environmental Site Assessment ("ESA") provides a review and makes a recommendation as to whether further investigation is warranted (a Phase II Environmental Site Assessment). This latter report would confirm or disavow the presence of an environmental hazard and, should one be found, will recommend additional review and/or mitigation efforts that should be undertaken.
Physical Depreciation
A term that is frequently used when physical deterioration is intended. In a broad concept it may relate to those elements contributing to depreciation that are existent or inherent in the physical property itself, as distinguished from other and external circumstances that may influence its utilization. Not a clear or proper them without qualification and explanation.
Physical Property Inspection
Identifies whether the property has been physically inspected by the originator.
Abbreviation for principal, interest, taxes and insurance, often combined in a single monthly mortgage payment.
Planned Unit Development (PUD)
A housing development where there is a homeowners association and common areas owned by the homeowners.
A map or chart of a lot, subdivision or community, showing boundary lines, buildings and easements.
Identifies the number of playgrounds located on the property.
Abbreviation for private mortgage insurance: insurance issued by a company, which insures the lender against loss in the event that the borrower defaults on the mortgage.
Points are a one time charge assessed at closing by the lender. One point equals 100 basis points, or 1% of the loan. Referred to as a "par loan" if no points are charged by the lender.
Identifies the number of swimming pools located on the property.
Portfolio Loan
Loans held as an investment by a bank, savings and loan or credit union.
Power of Attorney
A written instrument authorizing a person to act as the agent of the person granting it, and a general power authorizing the agent to act generally in behalf of the principle. A special power limits the agent to a particular or specific act as: a landowner may grant an agent special power of attorney to convey a single and specific parcel of property. Under the provisions of a general power of attorney, the agent having the power may convey any or all property of the principal granting the general power of attorney.
Preliminary Title Fee
A quoted or estimate fee to cover the cost of the title documents and services required by the lender to obtain a mortgage.
Prepaid Items of Expense
Perorations of prepaid items of expense which are credited to the seller in the closing statement.
Prepaid Interest
The interest charged to borrowers at loan closing to pay for the cost of borrowing for a partial month. For example, if a loan closes on the 15th of the month and the first payment is due 45 days later, the lender will charge 15 days of prepaid interest.
Full payment of the principal before the due date; occurs when a property is sold or the borrower refinances the existing loan.
Prepayment Lockout
The number of periods during which the borrower is restricted from prepaying the mortgage loan; typically expressed in years or months. In order to reduce prepayment risk, commercial mortgages commonly have lockout periods and/or prepayment premiums or yield maintenance. A prepayment penalty is paid by the borrower for any prepayments made on a mortgage loan if required under the loan documents. The premium is usually set at a fixed rate which, at times, decrease in steps as the loan matures. For example, a mortgage loan can have a premium of 5% for the first seven years and during the next five years the premium decreases at a rate of 1% per year (4% in year eight, 3% in year nine); after year twelve, there is no prepayment premium.
Prepayment Penalty
Charge levied by the lender for paying off a mortgage loan before its maturity date.
Prepayment Privilege
The privilege or right given by the mortgagee (lender) to the mortgagor (borrower) that allows prepayment all or part of a mortgage debt before it is due.
Prescription (law) is the method of sovereignty transfer of a territory through international law analogous to the common law doctrine of adverse possession for private real-estate
The present value of a future cash flow is the nominal amount of money to change hands at some future date, discounted to account for the time value of money.
Primary Mortgage Market
The process of obtaining a real estate loan, including the consumer’s completion of a loan application form, validation of the credit and property information, loan underwriting by the lender and closing of the mortgage loan.
Prime Rate
An index rate; a published interest rate (or interpolation of rates) usually corresponding to the current yield of a US Treasury note or bond, Prime Rate, LIBOR, etc. The Final Note Rate is typically equal to the sum of the index rate plus the spread. Index rate yields are typically published in daily papers by financial information services (e.g. Wall Street Journal, Bloomberg).
Primary Residence
Considered the permanent location of residency.
1) The outstanding balance of a loan.
2) A party to a real estate transaction.
3) The head of a real estate firm.
Private Mortgage Insurance (PMI)
Insurance which covers the portion of a mortgage loan above 80% thereby reducing the lenders risk to principal loss in the event of a borrowers default. The insurance coverage allows lenders to make higher loan-to-value ratios (95% LTV).
Processing Fee
A fee, charged by a lender, to prepare all the documents associated with your mortgage.
Processing, Underwriting and Document Fees
Charges for the lender’s services associated with making the loan.
Professional Fees
An expense line item that includes all fees and expenses associated with legal, accounting, data processing and auditing costs.
Professionally Managed
Identifies whether the property is managed by an unrelated professional management company.
The rights of ownership. The right to use, possess, enjoy, and dispose of a thing in every legal way and to exclude everyone else from interfering with these rights. Property is generally classified into two groups, personal property and real property.
Property Class
A general classification of real property based on design, construction and finish.
Property Insurance
An expense line item that includes all fees relating to property and casualty and other related insurance costs associated with the property.
Property Name
Identifies the property name that is displayed on the Property List; an easily recognizable or descriptive name; typically a street address or property name (e.g. "100 Main Street" or "Commerce Center Mall"). The default name is the Loan Name.
Property Subtype
Identifies the property or "building" subtype; sub categorization that further describes the building type.
Property Tax
A tax levied by the local municipality or county on real and personal property.
Indicates the general property type; Office, Multifamily, Mobile Home Park, Retail, Industrial, Healthcare, Self Storage, Hotel and Mixed Use.
To divide in proportionate shares, such as taxes, insurance, rent, or other items.
Prorata Expense Reimbursement
Identifies that the cost of the associated item is allocated between the lessor and lessee based on the lessee’s proportionate share of net rental area (e.g. to prorate real property taxes or insurance).
Public Sewer Service
Identifies whether the property is serviced with public sewer.
Public Water Service
Identifies whether the property is serviced with public water.
An event resulting in the conveyance of real estate. In LoanSizer, the purpose for which the loan request is being completed; options include Purchase, Refinance, Construction.
Purchase Price
If the Loan Purpose if Purchase, identifies the purchase price for the property.