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Houston Mortgage > Glossary >
Credit Repair > P 1-10
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Parking
A term that refers to depositing, or ˇ°parking,ˇ± cash in a high-yield money market account until you need to move it to a checking account to pay bills.
Payment cap
A contractual limit on the size of the monthly payment of an adjustable-rate mortgage or other variable rate loan.
Payment saver loan
Also known as a lease-like loan. It combines features of a lease and a conventional auto loan and is most often offered by credit unions. Payments can be as much as 30 percent less than a conventional amortized loan, because a lease-like loan has a big balloon payment at the end. Requires no down payment or security deposit. Mileage allowance is usually higher. At the end of the loan, the borrower can sell or trade in the car and pay off the loan balance, or keep the car and refinance the amount owed, or return the car to the lender as payment for the balance.
PC banking
A service that allows a bank customer to obtain account information and perform certain bank transactions through a personal computer.
Penalty
For taxes, a fine charged by the IRS for paying or filing your taxes late. You may be charged interest in addition to penalties. Tax penalties are not deductible.
Penalty rate
Several percentage points higher than a card's current annual percentage rate, which goes into effect after two late payments. On some cards, a single late payment triggers a penalty rate.
Per item charge
The fee charged to an account holder who has exceeded the number of free transactions allotted to the described account and/or the balance in the account did not meet the average monthly balance required to waive the fee.
Periodic rate
The interest rate described in relation to a specific amount of time. The monthly periodic rate, for example, is the cost of credit per month; the daily periodic rate is the cost of credit per day.
Periodic rate cap
In an adjustable-rate mortgage (ARM), it limits how much an interest rate can increase or decrease from one adjustment period to the next.
Personal Identification Number
A confidential personal identification code, usually consisting of four to six digits, used by bank customers to access their account balances when using a self-service automated teller machine (ATM). Also known as a PIN.
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Houston Home Mortgage