Welcome to our Glossary of Terms.   Here you will find descriptions of terms used throughout our web site and terms common in the industry.

To help you locate a term, enter the first character or two of a term and press the 'Refresh' button. Or, just click on the handy alphabetical index to jump to that section of the glossary.

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periodic payment cap
A limit on the amount that payments can increase or decrease during any one adjustment period under an adjustable rate mortgage. See cap.

Periodic rate cap
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Periodic Service Fee
The periodic (generally monthly) service fee. The period is determined by the payment frequency (i.e. payments_per_year)

Periods per year
The number of repayment periods for non-accelerated loans. Select 1 for annual; 2 for semi-annual (twice a year), 3 for three periods of four months each; 4 for quarterly (four periods of three months each); 6 for six periods of two months each; 12 for monthly; and 24 for semi-monthly.
Do not use 24 for bi-weekly or 52 for weekly (accelerated loans).

Periods per year (htm)
The
number of repayment periods for non-accelerated loans. Select 1 for annual; 2
for semi-annual (twice a year), 3 for three periods of four months each; 4 for
quarterly (four periods of three months each); 6 for six periods of two months
each; 12 for monthly; and 24 for semi-monthly. Do not use 26 for bi-weekly or
52 for weekly (accelerated loans).


Periods per year (QS) (htm)
This is a required field for the Quick Solver. Enter 12 for monthly and so
on.


Periods per year for loans where principal and interest are being amortized differently.
This is the number of Interest periods per year. Since you have chosen to amortize the principal and interest differently the payments per year entry box in the left panel applies to the principal and this entry box applies to the interest payments.

Periods per year (CON) (htm)
The periods per year for the construction portion of the loan


personal property
Any property that is not real property.

Phone Number (htm)
Enter
your telephone number, including area code.


PITI
An acronym for the total monthly payment. Principal, Interest, Taxes and Insurance. This may include mortgage insurance, if required.

PITI Ratio
The ratio of principal, interest, tax, and insurance payment to income.

plus interest loan
A loan type where a fixed payment of principal is required each period along with the interest accrued during the period. This loan type is sometimes called a constant payment to principal loan(CPP) or straight-line amortization loan. We call it a plus interest loan because of the we say it, that is: I want to pay five hundred dollars a month, plus interest.

Plus Interest Loan (htm)
Select
to calculate a loan where payments include a fixed principal amount plus
accrued interest for the period.


Plus Interest Loan Screen (htm)
Enter the terms for a plus interest loan (where payments include a
fixed principal amount plus accrued interest for the period). You must enter
the interest rate, periods per year, term, loan amount, prepaids, advance date,
date of first payment, and interest terms or error messages display.

Click the Options and Variations button on the toolbar to
enter any variations.


PMI
Private mortgage insurance

PMI - No up-front payment
A level Private Mortgage Insurance premium paid along with the principal and interest over the life of the loan.

PMI - up-front payment
With Private Mortgage Insurance (PMI) an initial premium can be paid when the loan is originated (up-front) with subsequent monthly payments which are unchanged for one year at a time. If you were to have a single up-front premium covering the entire loan, you could enter the premium and then not enter anything for subsequent periods.

PMI- Split Premium
With Private Mortgage Insurance (PMI) an initial premium can be paid when the loan is originated (up-front) with subsequent monthly payments which are unchanged for one year at a time. If you were to have a single up-front premium covering the entire loan, you could enter the premium and then not enter anything for subsequent periods.

point
One percent of the loan amount assessed at closing by a lender to increase the yield on the loan. Example; 1. 5 points on a $100,000 mortgage would cost the borrower $1,500

Portion financed $ (htm)
Enter
the appropriate dollar amount if any portion of the mortgage insurance premium
for the first year is financed. If you enter a figure in this field, leave the
percent field blank.


Portion financed % (htm)
Enter
the appropriate percentage if any portion of the mortgage insurance premium for
the first year is financed. If you enter a figure in this field, leave the
dollar amount field blank.


Portion of Upfront Mortgage Insurance Premium Financed
The percentage of the upfront mortgage insurance premium that is financed.

Portrait (htm)
Select
to set the print orientation as portrait, typically interpreted as
"tall. "


power of attorney
The legal power conferred on one person to act on another person's behalf. It can grantcomplete authority or can be limited to certain acts and/or certain periods of time.

Premium (K) (htm)
Select
to display the premium in the results.


Premium rate
Enter the VA mortgage insurance premium rate.

prepaid basis
Allow the basis used to calculate prepaid interest to differ from the basis used for the balance of the loan (the accrual basis). This can be selected using the Check box under System Defaults button on the tool bar. If this is left unchecked prepaid basis is always the same as accrual basis.

Prepaid Basis (htm)
Select
the accrual basis for any prepaid interest.


prepaid expenses
Expenses such as taxes, insurance and assessments which are paid in advance of their duedate and which must be paid by the buyer on a prorated basis at closing.

prepaid interest
That amount of money collected at closing to cover the interest for the loan from the settlement date to the end of the month.

Prepaid Interest Places Rounding
Purpose — Allows user to round the per diem interest amount in the prepaid interest to a designated number of decimal places.

Prepaids (DRAW) (htm)
Enter
any prepaid finance charges for the draw portion of the loan.


Prepaids (htm)
Enter
the amount of the fees and charges to be added to the loan, as a dollar amount.


Prepaids (QAPR) (htm)
Enter
the amount of the Prepaid Finance Charges disclosed for this loan.


prepayment
Payment of a loan before its maturity.

prepayment penalty -
A charge that a borrower may be required to pay if a loan is paid in full or large part in advance of the regular schedule.

Present Value
Displays the present value of the account.

Present Value (htm)
Displays
the present value of the account.


Preview Output (icon) (htm)
Click to preview the desired application results on your screen.


Previous MI Credit
Previous MI Credit

Previous Month Button (htm)
Click to display the previous month.


Previous Page (htm)
Click
to display the previous page of the results.


Previous Year Button (htm)
Click
to display the previous year.


Price of Home
Enter the amount you would pay for the house in this comparison.

Primary Borrower Birthdate
The primary borrower’s birthdate.

prime rate
The interest rate that banks charge to their preferred customers.

Principal (E) (htm)
Select
to display the remaining principal for all payments in the Excel spreadsheet.


principal or principal balance
The outstanding balance or amount of debt.

Principal P/Y
In a multiple payment stream loan this is the number of PRINCIPAL periods per year for payment stream.

Principal Payment Amt. (htm)
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Principal payments per year (htm)
In a plus interest loan, this is the number of principal payments
per year. In all other loan types, this is the number of payments (principal
and interest) per year.


Principal portion of pmt (G) (htm)
Select to display the principal portion of the payment in the
amortization schedule.


Principal term (htm)
The
total number of payments for this stream. For annual payments, set this field
to the number of years, according to the Base Terms entered above, and enter 1
in the Prin PY field.


Principal Term (M5) (htm)
In
a plus interest loan, this is the number of principal payments. In all other
loan types, this is the number of payments of principal and interest. In
balloon loans, where the amortization term and the actual term differ, this is
the amortization term.


principal, interest, taxes, and insurance (PITI)
The four components of a monthly mortgage payment. Taxes and insurance refer to the amounts that are placed in escrow each period for property taxes, mortgage insurance and hazard insurance.

Print
Click this check box, then click the "Request Output" button. The page will be displayed without the web site navigation and graphics. You can then print the page and use your "Back" button to return to eDDMath.

Print (htm)
Click to
print the report, according to the options set in the Print dialog box.


Print (icon) (htm)
Select
to print the current screen.


Print header on 1st page only (htm)
Select to print the header on the first page only of the
amortization schedule.


Print header on all pages (htm)
Select to print the header on all pages of the amortization schedule.


Print page numbers (htm)
Select
to print page numbers on the amortization schedule.


Print Screen (htm)
Select
the print options for the report. You can change the system printer, set its
properties, and control the pages that print.

You can also set the number of copies and print margins.


Printer (htm)
Select
the system printer where you want the results to print.


private mortgage insurance (PMI)
Mortgage insurance supplied by a private mortgage insurance company to protect lenders against loss caused by a mortgagor's default. . It is typically required when the loan-to-value(LTV) ratio is in excess of 80 percent.

Problem Report (htm)
Select
to submit a bug report.


Prompt Unsaved Data (htm)
Select
to display a message if you close a study without saving it first. Deselect to
lose unsaved data without a message.


Properties (htm)
Click
to display and modify the options for the selected printer.


Property Appreciation
The property appreciation rate to use in the mortgage calculation.

Property Insurance premium (htm)
Enter the fee for property insurance. You don't need to include the
premium in the finance charge if it is optional, or if the creditor is allowed
to purchase it from an insurer of their choice.


Property survey (htm)
Enter
the amount for the property survey.


Property Taxes
The estimated amount of the yearly property tax you might expect to pay on the property in the comparison.

QAPR Advance date
Enter the date the funds were advanced from the disclosure statement or the note..

QAPR Combined Report Screen (htm)
This screen displays the combined report for the loan application.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.


QAPR Individual (htm)
This
screen displays the QAPR information only.

You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.








QAPR Payment amount
Enter the amount of the payments for this payment stream.

QAPR Screen (htm)
Enter
the loan number of an existing loan to load the calculated information or enter
the loan terms. Click Calculate to determine the APR for the loan for the
Truth-in-Lending statement.


qualifying ratios
Calculations that are used in determining whether a borrower can qualify for a mortgage. They consist of two separate calculations: Housing expense as a percent of monthly grossincome (front-end ratio), and total debt (PITI plus any other monthly debt payments like caror personal loans and credit card debt) as a percent of income (back-end ratio).

Question (htm)
Select
to ask a question of our Technical Support staff.


Quick APR (htm)
Select
to calculate the annual percentage rate for the specified loan information,
which you can enter or load from a saved study.


Quick Solve (icon) (htm)
Click
to display the Quick Solve dialog box.


Quick Solve Screen (htm)
Enter
all fields except for the one you want to calculate and click Solve to display
the missing field value.


random rate loan
A loan type where a different interest rate can be specified for a number of payment periods. This differs from a variable rate loan in that the rates are declared at the beginning of the loan rather than varying with an index during the term of the loan.

Random Rate Loan (htm)
Select
to calculate a random rate loan, which can have up to fifteen different rates.
An annual percentage rate (APR) is calculated, taking into account the various
rates. A random rate loan is not the same as an adjustable or variable rate
loan, because it isn't tied to an index.


Random Rate Loan Screen (htm)
Enter the terms for the random rate loan (where you can enter up to
15 different interest rates for different terms). You must enter the interest
rate, periods per year, term, loan amount, prepaids, advance date, date of
first payment, and number of periods for each rate or error messages display.

Click the Options and Variations button on the toolbar to
enter any variations.


Rate #1 (htm)
Enter the
monthly rate for this insurance period.


Rate (htm)
Enter the
interest rate for this series of payments.


rate cap
For an adjustable-rate mortgage (ARM), 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. See cap.

Rate for 1st year (htm)
Enter
the monthly insurance rate for the first year when collecting an up-front
premium.


rate lock
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time.

Rate Rounding Method
This variable, in conjunction with precision, tells the engine how to round the interest rate. 1 = Down. 2 = Up. 3 = Nearest.

Rate Rounding Precision
This is the precision that the interest rate (index + margin) should be rounded to (i.e. 0.125, 0.25, etc.).

rate-improvement mortgage
A fixed-rate mortgage that includes a provision giving the borrower(s) a one-time option to reduce the interest rate (without refinancing) during the early years of the mortgage term.

RE Appraisal Fee (htm)
Enter
the amount of the real estate appraisal fee, which is excluded from finance
charges for mortgages.


Real Estate Settlement Procedures Act (RESPA)
A Federal consumer protection law Federal law which requires the provision of Good FaithEstimates of Closing Costs, prohibits kickbacks for referrals of related services, and standardizes the closing with a required form and format (HUD-1).

real property
Land and its appurtenances, including anything of a permanent nature such as structures,trees, minerals, and the interest, benefits, and inherent rights thereof.

Recast (Years) (htm)
Enter
the number of years until the payment must be recalculated for the term of the
loan.


recording
The acceptance by the proper government office of a properly executed legal documentsuch as a deed, a mortgage note, a satisfaction of mortgage, or an extension of mortgageetc. , thereby making it a part of the public record.

refinance transaction
The process of paying off one loan with the proceeds from a new loan using the same property as security.

Reflect Other Buydown Portion
This flag tells the engine whether to use the portion of the buydown paid by a party other than the borrower for the calculation of the Annual Percentage Rate. No, do not reflect it. Yes, reflect it. If Yes is chosen, the buydown is part of the credit agreement. If No is chosen, the buydown is not part of the credit agreement.

Reimbursement Information (htm)
You can scroll through the pages, zoom in and out, and print
the report by using the icons on the toolbar.



More glossary items are available....
Please use the index or Click here to view the next set of items.

 

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