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Houston Mortgage > Glossary >
Mortgage > P 11-20
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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.
PITI reserves
A cash amount that a homebuyer must have on hand after making a down payment and paying all closing costs. The reserves required by the lender must equal the amount a homebuyer would pay for principal, interest, taxes and insurance for a specified number of months.
Plat
A map that shows a parcel of land and how it is subdivided into individual lots. Plat maps also show the locations of streets and easements.
PMI
Private mortgage insurance. A policy that protects the lender by paying the costs of foreclosing on a house if the borrower stops paying the loan. Although PMI protects the lender, it is paid monthly by the borrower. Private mortgage insurance usually is required if the down payment is less than 20 percent of the sale price.
Point
A point equals 1 percent of a mortgage loan. Some lenders charge "origination points" to cover expenses of making a loan. Some borrowers pay "discount points" to reduce the loan's interest rate.
Points
A point equals 1 percent of a mortgage or other loan. Some lenders charge "origination points" to cover expenses of making a loan. Some borrowers pay "discount points" to reduce the loan's interest rate.
Portfolio lender
A company that underwrites mortgage loans and keeps them on the books instead of selling them on the secondary market.
Possession
The condition of having signed all the papers at closing and having received keys to the house.
Power of attorney
A document in which the signer authorizes someone to conduct business in his or her name -- signing title documents and checks, for example.
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Houston Home Mortgage