ATM / Branch Locator




Banking Terms




The monthly principal and interest payment required when repaying a mortgage in accordance with its terms.


An employee or former employee who has an accrued benefit under the plan.

WK: 401(k) Answer Book - Great West Retirement Services, Glossary - © 2011 Wolters Kluwer


A business operated by two or more individuals in non-corporate form.


The beneficiary of the check; the person or entity to whom it is payable.

Periodic Payment Cap

On an adjustable-rate mortgage (ARM), a limit on the amount that payments can increase during a single adjustment period.

Personal Income

Economic indicator that measures the total income of all Americans from all sources, and is reported both before and after taxes. Also reports personal spending and personal savings. The level of spending can be used as an indicator of consumer optimism. Frequency: monthly. Source: Commerce Department.

Personal Property

Any and all property that is not real property.


A scam where a perpetrator imitates legitimate companies in e-mails to lure people to share passwords or credit card numbers.


(noun) A PIN is an abbreviation for "personal identification number." You need a PIN to get money out of an ATM. A PIN is a number that only you know, so if someone stole your debit card and tried to use it at an ATM, that person would not be able to get money out of your account because they do not know your PIN.

©2010 Wordsmyth (definition only) with TB&T additions


(P)rincipal, (I)nterest, (T)axes, and (I)nsurance is a reference to the total monthly payment required to repay a mortgage in accordance with its term as well as monthly escrow payments for taxes and insurance.

Planned Unit Development (PUD)

A housing project that includes common property that is owned and maintained by a homeowners' association for the benefit and use of the individual unit owners.

Point of Sale

A terminal used to transfer funds from a bank account to pay for purchases.


Fees that are collected by the lender in exchange for a lower interest rate. Commonly called discount points, each point is equal to 1% of the loan amount. For our comparison purposes, a discount point is considered to be a lender fee. To determine if it is wise to pay discount points to obtain a lower rate, you must compare the up front cost of the points to the monthly savings that result from obtaining the lower rate.


An acronym for “Point of Purchase Entry”; a method of payment for the in-person purchase of goods and services by consumers. The Single Entry debits are created by the originator based on written authorization and account information from a source document (check) obtained from the consumer at the point-of-purchase. The source document is voided by the merchant and returned to the consumer at the point-of-purchase is used to collect the information required to create the ACH Debit entry to the consumer's account.

Source: http://www.treasurysoftware.com/Help_ACH_Universal/index.html?mapping_decide_pop.htm

Pop-Up Blocker

A utility that prevents Web site popups from displaying. The challenge with this software is to distinguish a valid popup from an advertisement. There are an enormous number of Web pages that launch legitimate browser windows to display additional information, and a popup is a small browser window.

Source: http://www.answers.com/topic/popup-blocker#ixzz1D1lLzylv

Positive Pay

A cash-management service employed to deter check fraud. Banks use positive pay to match the checks a company issues with those it presents for payment. Any check considered to be potentially fraudulent is sent back to the issuer for examination.


Postdated Check

An item bearing a future date. It is not valid until that date is reached.


The process of adding deposits to an account balance and subtracting checks and other withdrawals.

Power of Attorney

A written legal instrument that authorizes another person to act on one's behalf. A power of attorney can grant either complete or limited authority.


An acronym for “Prearranged Payment or Deposit”; prearranged deductions from a bank account for payment of a third party (an entry typically used for payrolls or billing).

©2011 NACHA - The Electronic Payments Association® All rights reserved.


Procedure to determine how much money a potential homebuyer will be eligible to borrow prior to actually applying for a loan.


Expenses of property ownership or expenses incurred while obtaining a mortgage that must be paid in advance. Prepaids typically include real estate taxes and hazard insurance.


Any amount that is paid to reduce the principal balance, not interest, of a loan before the due date.

Prepayment Penalty

A monetary penalty charged by a lender if all or part of a loan is paid off before it is due.


The actual balance, excluding interest, of a mortgage loan. Also refers to the amount of the monthly mortgage payment that will be applied to the actual balance.

Principal & Interest

The payment required to repay a mortgage in accordance with its terms. Sometimes referred to as "P&I".

Principal Balance

The outstanding balance of principal on a loan. Principal does not include interest or fees.

Private Mortgage Insurance

Insurance provided by a private company to protect the mortgage lender against losses that might be incurred if a loan defaults. The cost of the insurance is usually paid by the borrower and is most often required if the loan amount is more than 80% of the home's value. Sometimes referred to as mortgage insurance.


(verb) To present a will to the court for appointment of the executor or administrator, which is the first step in the settlement of an estate.

The Glossary of Fiduciary Terms, second edition, published by the American Bankers Association

Probate Court

The court that has jurisdiction with respect to wills and intestacies and sometimes guardianships and adoptions.

The Glossary of Fiduciary Terms, second edition, published by the American Bankers Association

Profit Sharing Plan

A plan under which contributions made by the employer are allocated to a participants pursuant to a definite predetermined formula. Contributions are generally discretionary and may be made without regard to profits.

WK: 401(k) Answer Book - Great West Retirement Services, Glossary - © 2011 Wolters Kluwer

Promissory Note

A written promise to pay a specified sum to specified person over a specified period of time.

Proof Department

The department that verifies that transactions are in balance (credits and debits equal) before sending them on to the data center for processing. Proof also MICR encodes amounts, account numbers, and transaction codes on the bottom of checks and other documents that are processed.

Property Taxes

Taxes based on the assessed value of the home, paid by the homeowner for community services such as schools, public works, and other costs of local government. Sometimes paid as a part of the monthly mortgage payment.

Public Records

A collection of legal documents that are filed with the local government registry so that the public will know what liens, encumbrances or judgements may affect any piece of real estate.

Purchase Agreement

A written contract signed by the buyer and seller stating the terms and conditions under which a property will be sold.


Qualifying Ratios

Calculations performed by lenders to determine your ability to repay a loan. The first qualifying ratio is calculated by dividing the monthly PITI by the gross monthly income. The second ratio is calculated by dividing the monthly PITI and all other monthly debts by the gross monthly income.

Quitclaim Deed

A deed that transfers, without warranty, whatever interest or rights a grantor may have at the time the transfer is made. Often used to remove a possible cloud on the title.


About TBT

Who We Are Join Our Team People Who Make a Difference TBT Spirit of Giving Contact Us Site-Map

Helpful Links

AnnualCreditReport.com FDIC Consumer News FAQs

Consumer Protection

Fraud Protection Center FDIC Update Privacy / Security Disclosures
Member of FDICAn Equal Housing Lender
Powered by Encore Multimedia.