Interest paid before it is due. For example, at the close of a real estate transaction the borrower may prepay interest that will accrue between closing and the first monthly payment. …
Prepayment Penalty
A penalty that a lender may impose on a borrower who pays a loan off before its expected end date. A fee charged by a lender when the borrower prepays all or a part of a mortgage in excess of the …
Prequalification
A lender's preliminary assessment of a buyer's ability to pay for a home, and an estimate of how much the buyer may borrow. …
Pocket Door
A type of interior door that slides into a pocket in a wall. A sliding door that recesses into the wall when opened. …
Pressure Relief Valve
A safety vent that relieves excess pressure in a water heater. …
Point
An amount equal to 1 percent of the loan amount. Points may be paid by the borrower at the time the loan is made to get a lower interest rate. Lenders offer various rate/point combinations. …