PREPAYMENT PENALTY >> A charge which is assessed when the loan is paid before it?s due to compensate the investor for the loss of anticipated interest income.

PRIMARY CUSTOMER >> The primary borrower on the loan.

PRIMARY RESIDENCE >> The property in which the customer resides the majority of the time.

PRIME RATE INDEX >> A rate index which is the prevailing rate that banks charge to lend money to corporations.

PRINCIPAL >> The amount of debt on a mortgage, not including interest. The face value of a note, mortgage, etc.

PRINCIPAL AND INTEREST (P&I) >> This refers to the principal and interest portions of a monthly mortgage payment.

PRINCIPAL, INTEREST, TAXES & INSURANCE (PITI) >> The total of the monthly mortgage payment due, which includes all principal, interest, taxes and insurance.