You've probably heard some real estate terms and are wondering what in the world they mean. Use this glossary to look them up! If you are wondering what a word or phrase means and I don't have it in the glossary, please send me an email asking!

Per-diem Interest
Interest charged or accrued daily.

Personal Property
Item within the real property that is separate from the realty and can easily be removed from the property, i.e.: furniture, photographs, lamps.

PITI
Principal, interest, taxes, and insurance, forming the basis for monthly mortgage payments.

Plat Book
A public record containing maps showing the division of streets, blocks, and lots, and indicating the measurements of the individual parcels.

Point
An amount equal to 1 percent of the loan amount. Points may be paid by the borrower at the time the loan is made to get a lower interest rate. Lenders offer various rate/point combinations.

Pre-approval
A thorough assessment made by a lender of a potential borrower's ability to pay for a home, and a confirmation of the amount to be borrowed. The completion of a loan application is necessary to close the loan.

Pre-approval letter
A letter from a lender that states the amount of money a potential buyer can obtain.

Prepayment Penalty
A fee paid by a borrower who pays off the loan before it is due. This may be charged only when stipulated in the loan agreement.

Pre-qualification
Informal estimate of how much financing a potential borrower might expect to obtain. Not the same as pre-approval.

Price Range
The upper and lower limit of what a buyer is willing to pay for a home.

Principal
The amount of money borrowed, for which interest is charged.

Private Mortgage Insurance (PMI)
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.

Prorate
To allocate percentages of certain expenses to be paid by the buyer and seller at the time of closing.

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.