| Physical Deterioration |
| A type of depreciation (loss in value) to improvements caused by wear and tear or lack of maintenance. |
| PI (Principal and Interest) |
| Indicates what is included in a monthly mortgage payment on real property, e.g., principle loan amount plus interest on the loan. |
| PITI |
| The typical components of a monthly mortgage payment, including loan Principal, Interest on the loan, real estate Taxes and hazard Insurance. |
| Planned (Unit) Development |
| A subdivision of individually owned lots with one or more areas owned in common. Homeowner’s Association dues are typically mandatory. |
| Points |
| A charge by the lender for originating a loan, which is expressed as a percentage of the loan amount (i.e., percentage point). For example, two points of a $100,000 loan is $2,000.
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| Potential Gross Income (PGI) |
| The total income from all sources at full occupancy, before deducting for vacancy and collection losses, and before deducting any operating expenses. |
| Private Mortgage Insurance |
| An insurance contract that protects the lender against loss resulting from the mortgagor's default on a mortgage. On most loans that have a Loan-to-Value ratio below 80%, the borrower is required to purchase private mortgage insurance (PMI). |
| Purchase Money Mortgage (PMM) |
| A mortgage given from buyer to seller in lieu of cash, to secure all or a portion of the purchase price; this is an alternative to an institutional mortgage loan. |