PITI - Principal, interest, taxes and insurance.

Points - One time charge by the lender in order to increase the yield of the loan, one point is one percent of the amount of the loan.

Prepayment Penalty - The borrower is charged a fee for paying off a loan before it is due.

Principal - Remaining unpaid balance of a loan.

Private Mortgage Insurance (PMI) - Insurance that protects lenders against loss if a borrower defaults.

Purchase Agreement - A contract between the borrower and the lender that discloses the terms and conditions under which a property will be sold.