The P’s of the Mortgage Glossary

There are many P‘s in the mortgage glossary, and you should know what they mean if you want to get the best deal from your lender. These include P & I, which stands for Principal and Interest, which refers to the principal and interest portions of the monthly mortgage payment. There is also P & L, which is Profit and Loss, a statement of a businesses gross income, cost of goods, operating costs and net profit or loss. Other terms include pre-approval, which is what you get from your mortgage lender so you have an idea of how much house you can afford.

Another P to be aware of is the Pre-Payment Penalty. You want to make sure your loan doesn’t have one of those, so you can pay off your loan early without any extra payments. Also ask how many Points you’ll have to pay, as those can lower your interest rate but are equal to one percent of the mortgage amount. They can get expensive, so it’s important to know about them in advance. With the right lender, you won’t have any worries about all the P‘s you’ll come across.

for more information about refinance home mortgage options in the Orange County area, contact Avis Lending today.

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