| Impound |
That portion of a borrower's monthly payments held by the
lender or servicer to pay for taxes, hazard insurance, mortgage insurance,
lease payments, and other items as they become due. Also known as reserves.
|
| |
|
| Impound Account |
Account held by a lender for payment of taxes, insurance, or
other |
| |
|
| Improvements |
Valuable additions to the land, such as buildings, fences,
roads, etc., which increase the value of the property. |
| |
|
| In-File Credit Report |
An objective account, normally computer-generated, of credit
and other financial information obtained from a credit reporting agencies.
|
| |
|
| Income Approach to Value |
An estimate of value based on the monetary returns that a
property can be expected to generate; capitalization. |
| |
|
| Income Property |
Real estate developed or improved to produce income. |
| |
|
| Independent Contractor |
The term is most important as used to describe the
relationship of broker and salesperson, employee or independent contractor. If
employee, the broker must withhold income tax and pay social security, provide
workmen's compensation, and may be liable for some negligent acts of the
salesperson while on the job. All of this is avoided by the broker if
salesperson is an independent contractor. |
| |
|
| Index |
A published interest rate against which lenders measure the
difference between the current interest rate on an adjustable rate mortgage and
that earned by other investments (such as one-three and five-year U.S. Treasury
security yields, the monthly average interest rate on loans closed by savings
and loan institutions, and the monthly average costs-of-funds incurred by
savings and loans), which is used to adjust the interest rate on an adjustable
mortgage. |
| |
|
| Inflation |
An increase in the amount of money or credit available in
relation to the amount of goods or services available, which causes an increase
in the general price level of goods and services. Over time, inflation reduces
the purchasing power of a dollar, making it worth less. |
| |
|
| Initial Interest Rate |
The starting interest rate for an adjustable-rate mortgage
(ARM) loan or variable-rate home equity line of credit. At the end of the
effective period for the initial rate, the interest rate adjusts periodically
during the life of the loan based on changes in a specified financial index.
Sometimes known as "start rate," "intro rate" or
"teaser rate." |
| |
|
| Initial Draw Amount |
The amount of the home equity line of credit that the borrower
is requesting at closing (up to, but never exceeding, the credit line amount).
|
| |
|
| Inspection Clause |
A stipulation in an offer to purchase that makes the sale
contingent on the findings of a home inspector. |
| |
|
| Installment Sale |
A tax term used to describe a sale which is usually
accomplished by use of a land contract. |
| |
|
| Installment Loan |
Borrowed money that is repaid in equal payments, known as
installments. A furniture loan is often paid for as an installment loan. |
| |
|
| Insurable Title |
A property title that a title insurance company agrees to
insure against defects and disputes. |
| |
|
| Insurance |
A contract that provides compensation for specific losses in
exchange for a periodic payment. An individual contract is known as an
insurance policy, and the periodic payment is known as an insurance premium.
|
| |
|
| Insurance Binder |
A document that states that insurance is temporarily in
effect. Because the coverage will expire by a specified date, a permanent
policy must be obtained before the expiration date. |
| |
|
| Insured Mortgage |
A mortgage that is protected by the Federal Housing
Administration (FHA) or by private mortgage insurance (PMI). If the borrower
defaults on the loan, the insurer must pay the lender the lesser of the loss
incurred or the insured amount. |
| |
|
| Insured Loans |
A loan insured by FHA or a private mortgage insurance company.
|
| |
|
| Interest Rate Cap |
Limit on the amount an adjustable rate mortgage may increase
or decrease during specific intervals and over the term of the loan. This
safeguard protects the buyer from dramatic changes in monthly payments. |
| |
|
| Interest Rate Buydown Plan |
A temporary buydown gives a borrower a reduced monthly payment
during the first few years of a home loan and is typically paid for in an
initial lump sum made by the seller, lender, or borrower. A permanent buydown
is paid the same way but reduces the interest rate over the entire life of a
home loan. |
| |
|
| Interest Payment |
The portion of a monthly payment that goes to interest based
on the amortization schedule. |
| |
|
| Interest Rate Cap |
Limit on the amount an adjustable rate mortgage may increase
or decrease during specific intervals and over the term of the loan. This
safeguard protects the buyer from dramatic changes in monthly payments. |
| |
|
| Interest |
(1) The sum paid in return for the use of money; could be
considered rent for the use of money. (2) The type and extent of ownership in
property. |
| |
|
| Interest Rate |
The percentage rate of return charged for use of a sum of
money. This percentage rate is specified in the mortgage note. See note rate.
|
| |
|
| Interest Accrual Rate |
The percentage rate at which interest accrues on the mortgage.
In most cases, it is also the rate used to calculate the monthly payments.
|
| |
|
| Intestate |
Legal designation of a person who has died without leaving a
valid will. |
| |
|
| Intimidation |
As defined in the fair housing laws, it is the illegal act of
coercing, intimidating, threatening, or interfering with a person in exercising
or enjoying any right granted or protected by federal, state or local fair
housing laws. |
| |
|
| Introductory Rate |
The starting rate for a home equity loan or line of credit,
usually a discounted rate, for a short period of time. See initial interest
rate. |
| |
|
| Investment Property |
A property that is not occupied by the owner and is generally
rented to a tenant to produce income. |