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Houston Mortgage > Glossary >
Mortgage > 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.
Per-diem interest
Interest that is charged daily; usually refers to the partial month's interest that the buyer pays on the mortgage covering the period from the day of closing to the end of the month.
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
Chattel, or any movable, personal property that is not permanently attached to a house.
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.
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