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Houston Mortgage > Glossary >
Home Equity > P 1-10
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Passive activity
An activity in which you do not materially participate. Real estate rentals and limited partnerships are examples of passive activities.
Passive loss
Loss from a passive activity. Passive loss rules limit the amount of passive loss you can deduct to the total of your other income from passive activities.
Payment cap
A contractual limit on the size of the monthly payment of an adjustable-rate mortgage or other variable rate loan.
PC banking
A service that allows a bank customer to obtain account information and perform certain bank transactions through a personal computer.
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 loan
A personal loan is a loan from a lender that is not secured by any property. Rates tend to be similar to those of credit cards, which are another type of unsecured loan. The personal loan rates quoted on Bankrate are for a $3,000 fixed-rate loan and a term of two years.
Personal property taxes
Also called property taxes, can include real property, intangible or tangible property tax. Generally, everything that is not real estate is considered personal property. To differentiate between real property and personal property, the tax assessing official must consider the manner in which property is attached to or secured at the location.
Piggyback loan
A piggyback loan is a combination home loan, designed to avoid mortgage insurance, for borrowers who make down payments of less than 20 percent. A piggyback consists of a primary mortgage for 80 percent of the home's value, plus a second mortgage for the rest of the money needed. Loans structured this way avoid the need for mortgage insurance. The second mortgage is either a fixed-rate home equity loan or a variable-rate home equity line of credit.
PITI
Acronym for the elements of a mortgage payment: principal, interest, taxes and insurance.
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Houston Home Mortgage