Resources > Glossary > P

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

0-9  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  [P]  Q  R  S  T  U  V  W  X  Y  Z  
Common Terms 1   Common Terms 2

The payment letter to borrowers discloses the borrower's actual monthly payment of principal and interest plus any additional payments determined by escrow. Reserve for taxes is one of the categories in the...

The maximum rate increase for a specific period for a specific loan in an adjustable rate mortgage (ARM) only. If your current rate is 5% and your periodic cap is 1%, then during the next adjustment, your rate can...

Making a false statement under oath constitutes perjury. Perjury is generally punishable by fine and/or imprisonment if made under oath to a public official.

Familiarity with an individual resulting from interactions with that individual over a period of time sufficient to eliminate every reasonable doubt that the individual has the identity claimed. an acquaintance, derived...

A notary can not notarize a photograph. A notary can only notarize signatures. A document could be written about a photograph, and the signature on the document could be notarized, and the photograph could be...

A Piggy Back Mortgage is a type of mortgage where a first mortgage and second mortgage are combined. The borrower can get two loans when the down payment is less than 20% to make paying for Private Mortgage Insurance unnecessary.

Principal, interest, taxes and insurance. PITI is also referred to as a monthly housing expense. The Settlement Statement discloses all fees and taxes associated with a mortgage.

Nongovernment provided insurance that protects lenders from loss if a particular borrower defaults. Fannie Mae usually requires private mortgage insurance for loans with loan-to-value (LTV) percentages exceeding 80%

Points are prepaid interest assessed at closing by the lender. Each point is equal to one percent of the loan amount, e.g. three points on a $100,000 mortgage would cost $3,000.

A legal instrument authorizing one to act as another's agent or attorney. The person who authorizes another to be their agent is the grantor, while the person receiving authorization is the attorney in fact...

Particular expenses of property which are paid in advance of their due date and will usually be prorated upon sale, such as taxes, insurance, rent, etc. Closing costs are other costs such as survey fees and courier costs paid to third parties.

A charge imposed by a mortgage lender on a borrower who wants to pay off part or all of a mortgage loan in advance of schedule. Many borrowers elect to not have a prepayment penalty if they intend to pay...

The Prepayment Rider discusses the borrower's right to prepay their loan. Sometimes there are penalties for prepaying a loan during the life of the loan, or during the first several years of the loan.

Principal refers to the total amount of money originally deposited into a Savings or CD account. However, when taking out a loan, it refers to the amount of debt, not including interest.

The Privacy Notice allows for disclosure of information about your credit and employment information based on the information the lender has. The disclosure can not occur without a borrower signature...

Also known as PMI. Nongovernment provided insurance that protects lenders against loss if a borrower defaults. Fannie Mae generally requires private mortgage insurance for loans with loan-to-value (LTV) percentages greater than...

This notary act takes place when a subscribing witness or executing witness appears before a notary and swears that another particular person signed a document. This is the only notary act...

A protest is an antiquated notary act, but is still done on occasion. A Notary could be asked to protest a non-payment. One can draft a document with official notary wording for a protest.

Planned Unit Development. It is the comprehensive development plan for a large area. Usually indicating where roads, schools, recreational, office, commercial or industrial and residential areas will be. It could...