Glossary of Terms
We have compiled a list of the most common real estate terms and definitions to assist
you in your search for a home. Whether you are a buyer or seller of real estate it is easy
to get confused by the language used in real estate transactions. With our comprehensive real
estate glossary you can easily navigate through the complicated world of buying and selling a home.
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Click in the letter below to see the glossary
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P
- prepayment penalty
- A fee charged to a borrower for paying out all or part of the principal of the mortgage or loan before it comes due.
- prime lending rate
- The minimum short-term interest rate charged by commercial banks to their most creditworthy clients. Prime is used as the basis for mortgages, business and personal loans, etc. Mortgages are usually several points above the prime rate.
- private mortgage insurance
- Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require PMI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent.
- property tax
- An annual or semi-annual tax paid to one or more governmental jurisdictions based on the amount of the property assessment. Generally paid as part of the mortgage payment.
- property tax assessment
- The determination of the value of real property upon which taxes will be imposed.