Glossary of Mortgage Terms

A piggyback loan is a second mortgage taken out at the same time as your main home loan, letting you split the purchase price across two loans so you can put less cash down and still skip private mortgage insurance.

PITI stands for principal, interest, taxes, and insurance—the four parts that make up most monthly mortgage payments and determine how much house you can afford.

A pocket listing is a property that is for sale but not listed on the Multiple Listing Service. Instead, it is sold privately through a real estate agent's personal network and connections.

A portfolio loan is a mortgage that a lender keeps on its own books instead of selling it, which gives the lender more freedom to set its own terms and qualification rules.

A power of attorney in real estate is a legal document that lets someone you trust handle property transactions on your behalf when you can't be there in person.

If the borrower stops making payments, a power of sale clause in a mortgage or deed of trust lets the lender sell the home without going to court.

A pre-inspection is a professional home inspection that a seller (or sometimes a buyer) orders before listing or making an offer, giving both sides a clearer picture of the property’s condition early in the transaction.

A prefab home is a house that’s built in sections at a factory, shipped to a building site, and assembled on a permanent foundation where the owner plans to live.

Preforeclosure is the period between when a homeowner falls seriously behind on mortgage payments and when the lender formally begins the legal foreclosure process to take back the property.

A prepayment penalty is a fee that some lenders charge when you pay off all or a large part of your mortgage ahead of schedule, usually within the first few years of the loan.