Tools & Resources

Pre-Qualification

A preliminary evaluation of your financial status performed by a lender to estimate the amount and type of loans available to you. An evaluation does not include a credit report, and does not formally commit the lender to giving you a loan.

Primary Mortgage Market

Lenders who make mortgage loans available directly to borrowers. PHH is a primary lender, as are many savings and loan associations and commercial banks. Primary lenders frequently sell their mortgages in the secondary mortgage market, which includes Fannie Mae and Ginnie Mae.

Principal

The amount of your mortgage loan, excluding interest, which has not been paid.

Principal & Interest (P&I)

The two charges that make up your monthly mortgage payment. Principal is the outstanding balance of your loan, and interest is the finance charge on that amount.

Private Mortgage Insurance (PMI)

A policy that guarantees payment of a conventional mortgage loan in case of default. Usually required if your down payment is less than 20 percent of the home's price.