| Term | Definition |
|---|
| planned unit development (PUD) | In a PUD, the planned unit development association owns and maintains property in a real property development project for the benefit of its members, who are owners of individual parcels of real property in the development and are members of the association because of that ownership. The level of services and fees are similar to a condominium complex, but since each owner has title to a specific parcel of land, lenders may treat units as non-condominiums. This allows higher LTV loans and eliminates owner occupancy percentage requirements. |
| plat book | A record of recorded subdivisions of land. |
| PMI | Acronym - private mortgage insurance. |
| points | Fees paid to induce lenders to make mortgage loans at a particular interest rate. Each point is equal to one percent (1%) of the loan principal. Same as discount points. |
| police power | The authority of a government to adopt and enforce law governing the use of real estate based on the need to promote public safety, health, and general welfare. |
| power of attorney (POA) | A written authorization by a person to another person to act for him on his behalf. |
| prepayment | Paying off all or part of the mortgage before the scheduled date. |
| prepayment clause in a mortgage | Statement of the terms upon which the mortgagor (borrower) may pay the entire or stated amount on the mortgage principal at some time prior to the due date. |
| prepayment penalty | A fee paid to the lending institution for paying a loan prior to the scheduled maturity date. |
| primary mortgage market | Lenders who originate loans and makes funds available directly to the borrowers. Contrast with secondary mortgage market. |
