The time period where payments on an adjustable-rate mortgage (ARM) may fluctuate.
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Terms starting with: P
Payment cap
A contractual limitation on the amount of the monthly payment of an adjustable-rate mortgage or other variable rate loan.
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Payment holidays
A mortgage feature that allows the borrower the opportunity to miss a scheduled mortgage payment.
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Payment type
Many mortgage lenders offer different methods to pay back the mortgage including: weekly, bi-weekly, weekly, bi-weekly rapid and weekly rapid.
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Penalty
In mortgage terms, a penalty is a set rate or length of time the penalty will be charged based on the remaining loan amount.
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Penalty interest rate (PIR)
The interest rate that penalty charges are calculated (such as missing a minimum monthly payment).
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Penalty rate
A rate charged to a borrower after he or she makes two late payments.
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Per-diem interest
Interest that is charged daily which usually refers to the partial month’s interest that the buyer pays on the mortgage covering the period from the day of closing to the end of the month.
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Periodic rate
The interest rate in relation to a specific amount of time.
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Periodic rate cap (PRC)
In an adjustable-rate mortgage (ARM), this limit restricts how much an interest rate can fluctuate from one adjustment period to the next.
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