A home that is sold before it is built. …
Prepaid Expenses
Expenses including taxes, insurance, and assessments that are paid before the due date. …
Prepaid Fees
Funds collected by the lender from the borrower to pay certain recurring items in advance, including interest, property taxes, hazard insurance, and, if applicable, private mortgage insurance (PMI). …
Prepaid Interest
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. …