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Permanent loan -- A long-term mortgage (10 years or more).

PITI -- Principal, interest, taxes and insurance.

Pledged account mortgage (PAM) -- When the borrower places money in a pledged savings account, and these funds, plus interest earned, are gradually used to reduce mortgage payments.

Points -- Prepaid interest assessed at closing by the lender. Each point equals 1 percent of the loan amount. (2 points on a $100,000 mortgage would cost $2,000 )

Power of attorney -- A legal document authorizing one person to act on behalf of another.

Prepaid expenses -- Money necessary to create an escrow account or to adjust the seller's existing escrow account. Can include taxes, hazard insurance, private mortgage insurance and special assessments.

Prepayment -- A privilege in a mortgage which allows the borrower to make payments before they are due.

Prepayment penalty -- Fees for early repayment of debt, allowed in 36 states and the District of Columbia.

Primary mortgage market -- Lenders making mortgage loans directly to borrowers such as savings and loan associations, commercial banks, and mortgage companies. These lenders sometimes sell their mortgages into the secondary mortgage markets such as FNMA or GNMA, etc.

Principal -- The amount of debt, not counting interest, left on a loan.

Private mortgage insurance (PMI) -- Default insurance for conventional loans, normally required with smaller down-payment loans.

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