The maximum amount the payment can adjust in any given time frame.

Principal, Interest, Taxes and Insurance.

A zoning designation for property developed at the same or slightly greater overall density than conventional development, sometimes with improvements clustered between open, common areas. Use may be residential, commercial or industrial.

An amount equal to one percent of the principal amount of the investment or note. Lender assesses loan discount points at closing to increase the yield on the mortgage to a position competitive with other types of investments.

A fee charged to a borrower who pays a loan before it is due. Not allowed for FHA or VA loans.

Insurance written by a private company protecting the lender against loss if the borrower defaults on the mortgage.

A written document in which the purchaser agrees to buy certain real estate and the seller agrees to sell under stated terms and conditions. Also called a sales contract, earnest money contract, or agreement for sale.