Tools & Resources

Premium

The amount you pay at regular intervals to maintain coverage on your home insurance and flood insurance if required.

Prepayment

Paying all or part of your mortgage before it is due. Partial prepayments can reduce the amount of your loan. Many mortgage loans offer prepayment without a prepayment penalty — an important consideration when you compare loan programs.

Prepayment Penalty

An amount charged by a lender when you make a prepayment to pay the loan in full before the final term. Not all loan programs have a prepayment penalty.

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.