Pane
A sheet of glass fitted into the opening in a window sash or door.
panel
A section or division of a wall, ceiling, or flat piece of building material that forms part of the surface of a wall, door, or cabinet.
panel box
Electrical distribution box with circuit breakers, fuses, and terminals, to which household wiring is connected.
panel door
A door with a frame of horizontal rails and vertical stiles that surround raised or recessed panels-a type of construction that allows a door to expand and contract with changes in moisture and weather without cracking or warping.
panel heating
A method of home heating by means of electric or hot water coils installed in ceilings, walls, floors or baseboards.
paneling
Strips of wood or wood-like material applied as a finish to a wall.
parcel
An officially described piece of land.
parget
A coating applied to a foundation wall to prevent water leakage.
parking strip
The strip of grass between the sidewalk and the street in front of a house.
parquet floor
A hardwood floor laid in small rectangular or square patterns, not in long strips, to form various designs.
partial payment
A payment that is not sufficient to cover the scheduled monthly payment on a mortgage loan. Normally, a lender will not accept a partial payment, but in times of hardship you can make this request of the loan servicing collection department.
particleboard
A board composed of wood chips glued together under pressure. It is similar to chipboard, but has a higher density.
partition
Any kind of structure dividing one room or space from another.
partnership
Unmarried individuals who buy a piece of property have several options, such as a live-in partnership (in which both buyers share the residence) or a shared-equity partnership (one buyer lives in the home and the other is an investor in the property).
party wall
A wall built along the boundary between two properties.
pass-through
An opening in a wall between the kitchen and breakfast or dining room used to pass dishes.
passive loss
A tax term that refers to any loss from a passive activity, such as the ownership but not the operation of a piece of rental real estate.
passive solar system
A system that supplies solar heat without the use of electric fans or pumps.
patent defect
A visible deficiency in a piece of property, such as a cracked basement slab or a sagging porch.
patio
An interior courtyard or a paved backyard area.
paving
Generally, a layer of concrete, asphalt or coated macadam. Used on streets, sidewalks and pathways.
payment cap
A legal limit on the amount a monthly payment can increase on an adjustable rate mortgage.
payment change date
The date when a new monthly payment amount takes effect on an adjustable-rate mortgage (ARM) or a graduated-payment mortgage (GPM). Generally, the payment change date occurs in the month immediately after the interest rate adjustment date.
peak
The uppermost point of a gable.
peaked roof
A roof rising either to a point or a ridge.
pediment
Peaked, rounded, or other decorative panel above a doorway.
percolation test
A test used to determine the ability of soil to accommodate a septic system.
Per Diem Interest
Interest calculated per day. (Depending on the day of the month on which closing takes place, you will have to pay interest from the date of closing to the end of the month. Your first mortgage payment will probably be due the first day of the following month.)
perennial
Any plant that produces leaves, flowers, and seeds from year to year, such as an iris or peony.
pergola
An arbor with an open roof of rafters supported by posts or columns.
perimeter heating
A method of warm air heating whereby the hot air registers are installed near outside walls beneath windows.
periodic payment cap
For an adjustable-rate mortgage where the interest rate and the minimum payment amount fluctuate independently of one another, this is a limit on the amount that payments can increase or decrease during any one adjustment period.
periodic rate cap
For an adjustable-rate mortgage, a limit on the amount that the interest rate can increase or decrease during any one adjustment period, regardless of how high or low the index might be.
personal property
Any property that is not real property. Any movable property in a house such as furniture or appliances.
pest-control inspection
A common pest-control inspection is a termite inspection, which is required in some states.
photoelectric switch
A switch that turns lights or other electrical devices on or off depending upon the light. An example of a photoelectric switch is a switch that turns on outdoor lights at dusk.
picket
One of the upright wooden stakes supported by upper and lower rails between posts in a type of fence.
pier
A rectangular masonry support column.
pigtail
A short wire connected to another wire, usually with a wire nut. Normally two or more pigtails are connected to a single wire for the purpose of making connections to multiple objects (two sockets, two switches, etc.).
pigtail cord
A short electrical cord with an integral plug, designed to be attached to an appliance.
pilasters
Decorative vertical columns attached to the wall or frame at each side of a doorway.
pilot
The flame or electronic control that ignites gas or oil burners.
pilot light
A small, continually burning gas flame inside a gas-fired water heater, dryer, range, or similar appliance. This flame ignites the appliance's gas burner.
pipestem lot
A lot connected to the street by a narrow strip of land.
pitch
The slope of a roof. Pitch is the ratio of vertical rise to horizontal run.
PITI
This stands for principal, interest, taxes and insurance. If you have an "impounded" loan, then your monthly payment to the lender includes all of these and probably includes mortgage insurance as well. If you do not have an impounded account, then the lender still calculates this amount and uses it as part of determining your debt-to-income ratio.
PITI reserves
A cash amount that a borrower must have on hand after making a down payment and paying all closing costs for the purchase of a home. The principal, interest, taxes, and insurance (PITI) reserves must equal the amount that the borrower would have to pay for PITI for a predefined number of months.
pivot rod
On a sink or tub pop-up assembly, a rod that runs through a rubber pivot ball and that slopes slightly uphill to the tailpiece of the stopper. Pushing the knob and the lift rod down causes the pivot rod to push the stopper up; pulling the knob causes the pivot rod to pull the stopper down.
plane
A woodworker's tool designed for shaving off small amounts of wood. Several different types are available. The longer the plane, the more evenly it will flatten a surface.
planned community
A concept dating back to the 19th century that describes any town or neighborhood built with certain guidelines or goals in mind.
planned unit development (PUD)
A type of ownership where individuals actually own the building or unit they live in, but common areas are owned jointly with the other members of the development or association. Contrast with condominium, where an individual actually owns the airspace of his unit, but the buildings and common areas are owned jointly with the others in the development or association.
plaster
A labor-intensive wall finish consisting primarily of lime, sand, and water.
plasterboard
Gypsum board, used instead of plaster.
plat book
A public record containing maps showing the division of streets, blocks, and lots, and indicating the measurements of the individual parcels.
plate
The bottom or top piece of a wall.
plenum
Heat distribution box on a furnace or central air-handling unit. The ductwork that delivers heated or cooled air to the home connects to this.
plumb
True according to a plumb line; perpendicular; vertical; to true up vertically as a wall by use of a plumb line.
plywood
A fabricated wood product constructed of three or more layers of veneer joined with glue, usually laid with grain of adjoining plies at right angles.
PMI (private mortgage insurance)
A form of insurance required by a lender when the borrower's down payment or home equity percentage is less than 20 percent of the home value. This insurance partially protects the lender if the borrower defaults on the loan.
pocket door
A type of interior door that slides into a pocket in a wall.
pocket door
A sliding door that recesses into the wall when opened.
point
A point is 1 percent of the amount of the mortgage.
Poly
Polyethylene- clear or black plastic.
porch
A structure that can be a simple covered entrance to a home or a fully enclosed room on the outside of a residence.
porte-cochère
A porch-like roof extending over a driveway.
portfolio lender
A lender that makes loans with its own funds and keeps the loans on the company's books-in other words, inside the institution's portfolio-rather than selling loans on the secondary market.
portico
A porch supported by a row of columns.
possession
A buyer officially takes possession of a house upon signing the closing papers and receiving the keys.
power of attorney
A legal document that authorizes another person to act on one’s behalf. A power of attorney can grant complete authority or can be limited to certain acts and/or certain periods of time.
pre-approval
A loosely used term which is generally taken to mean that a borrower has completed a loan application and provided debt, income, and savings documentation which an underwriter has reviewed and approved. A pre-approval is usually done at a certain loan amount and making assumptions about what the interest rate will actually be at the time the loan is actually made, as well as estimates for the amount that will be paid for property taxes, insurance and others. A pre-approval applies only to the borrower. Once a property is chosen, it must also meet the underwriting guidelines of the lender. Contrast with pre-qualification
Prepaid Expenses
Taxes, insurance and assessments paid in advance of their due dates. These expenses are included at closing.
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 that is paid in advance of when it is due. Typically charged to a borrower at closing to cover interest on the loan between the closing date and the first payment date.
prepayment
Any amount paid to reduce the principal balance of a loan before the due date. Payment in full on a mortgage that may result from a sale of the property, the owner's decision to pay off the loan in full, or a foreclosure. In each case, prepayment means payment occurs before the loan has been fully amortized.
prepayment penalty
A fee that may be charged to a borrower who pays off a loan before it is due.
pre-qualification
This usually refers to the loan officer’s written opinion of the ability of a borrower to qualify for a home loan, after the loan officer has made inquiries about debt, income, and savings. The information provided to the loan officer may have been presented verbally or in the form of documentation, and the loan officer may or may not have reviewed a credit report on the borrower.
pre-sold home
A home that is sold before it is built.
pressure relief valve
A safety vent that relieves excess pressure in a water heater.
price range
The upper and lower limit of what a buyer is willing to pay for a home.
prime rate
The interest rate that banks charge to their preferred customers. Changes in the prime rate are widely publicized in the news media and are used as the indexes in some adjustable rate mortgages, especially home equity lines of credit. Changes in the prime rate do not directly affect other types of mortgages, but the same factors that influence the prime rate also affect the interest rates of mortgage loans.
primer
The initial coat of paint or sealant applied to a surface to prepare it for painting.
principal
The amount borrowed or remaining unpaid. The part of the monthly payment that reduces the remaining balance of a mortgage.
principal and interest
Principal (the capital sum) and interest on the principal are combined in the mortgage payment to result in full repayment at the end of the loan's term (except in the case of balloon loans).
principal balance
The outstanding balance of principal on a mortgage. The principal balance does not include interest or any other charges. See remaining balance.
principal, interest, taxes, and insurance (PITI)
The four components of a monthly mortgage payment on impounded loans. Principal refers to the part of the monthly payment that reduces the remaining balance of the mortgage. Interest is the fee charged for borrowing money. Taxes and insurance refer to the amounts that are paid into an escrow account each month for property taxes and mortgage and hazard insurance.
principal paid over life of loan
The sum of scheduled principal payments are calculated by the lender to equal the face amount of the loan.
principle of conformity
The idea that a house will more likely appreciate in value if its size, age, condition, and style are similar to (or conform to) other houses in the neighborhood.
principle of progression
An appraisal term which states that real estate of lower value is enhanced by the proximity of higher-end properties.
principle of regression
An appraisal term which states that the value of higher-end real estate can be brought down by the proximity of lower-end properties.
privacy fence
A structure erected between two pieces of property.
private mortgage insurance (MI)
Mortgage insurance that is provided by a private mortgage insurance company to protect lenders against loss if a borrower defaults. Most lenders generally require MI for a loan with a loan-to-value (LTV) percentage in excess of 80 percent. With conventional loans, mortgage insurance is generally not required if you make a down payment of at least 20% of the home's purchase price. (Note, however, that FHA and VA loans have different insurance guidelines.)
probate
The process of establishing the validity of a will before a duly authorized court or person. Once validity is confirmed, the probate court then administers the sale of property as directed by the will or as authorized by the court to settle any financial obligations.
processing fee
A fee charged by some lenders for gathering information necessary to process the loan.
procuring cause
Legal term used to determine whether a broker is entitled to a commission.
production home
Homes that are mass-produced by one builder.
programming
A written summation by an architect of a project's design objectives, constraints, and criteria.
project budget
A fiscal outline that includes the construction budget and all costs for land, furniture, equipment, financing, professional services, contingencies, and owner-furnished goods and services.
promissory note
A written promise to repay a specified amount over a specified period of time.
property line
The official dividing line between properties.
property report
A disclosure filed with the state when a time-share project or subdivision is sold.
property tax
Tax paid on privately owned property. Property taxes are usually paid semiannually, or monthly if the lender requires. The amount is based on local tax rates and assessed property value.
property tax deduction
The U.S. tax code allows homeowners to deduct the amount they have paid in property taxes.
property value
The value of a piece of property, based on the price a buyer will pay at a given time.
prorate
To allocate percentages of certain expenses to be paid by the buyer and seller at the time of closing.
public auction
A meeting in an announced public location to sell property to repay a mortgage that is in default.
PUD (planned unit development)
A highly designed residential project that features relatively dense clusters of houses, which are usually surrounded by areas of commonly owned open space maintained by a nonprofit community association.
punch list
A list compiled by a buyer prior to a sale detailing items to be fixed before closing.
purchase agreement
A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.
purchase contract
A legal document that binds a buyer to purchase a piece of property for a set price, and also binds the seller to sell that property to the buyer.
purchase-money mortgage (PMM)
A mortgage obtained by a borrower as partial payment for a property.
purchase money transaction
The acquisition of property through the payment of money or its equivalent.
putty
A stiff, dough-like material consisting of pigment and vehicle, used for setting window panes and filling imperfections in wood or metal surfaces.
P.V.A.
Polyvinyl acetate- Sealer typically sprayed on prior to GWB.
P.V.C.
Poly Vinyl Chloride- solid drain pipe.
