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Income Property |
Real estate developed or improved to produce income.
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Insured Mortgage |
A mortgage that is protected by the Federal Housing Administration (FHA) or by private
mortgage insurance (MI). If the borrower defaults on the loan, the insurer must
pay the lender the lesser of the loss incurred or the insured amount. |
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Index |
A number used to compute the interest rate for an adjustable rate mortgage (ARM).
The index is generally a published number or percentage, such as the average interest
rate or yield on Treasury bills. A margin is added to the index to determine the
interest rate that will be charged on the ARM. This interest rate is subject to
any caps that are associated with the mortgage.
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Interest |
The fee charged for borrowing money. |
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In-File Credit Report |
An objective account, normally computer-generated, of credit and legal information
obtained from a credit repository.
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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, although it is not used
for an adjustable rate mortgage (ARM) with payment change limitations.
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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.
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Interest Rate |
The rate of interest in effect for the monthly payment due.
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Initial Interest Rate |
The original interest rate of the mortgage at the time of closing. This rate changes
for an adjustable rate mortgage (ARM). Sometimes known as "start rate" or "teaser."
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Interest Rate Buydown Plan |
An arrangement wherein the property seller (or any other party) deposits money to
an account so that it can be released each month
to reduce the mortgagor's monthly
payments during the early years of a mortgage. During the specified period, the
mortgagor's effective interest rate is "bought down" below the actual interest rate. |
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Installment |
The regular periodic payment that a borrower agrees to make to a lender.
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Interest Rate Ceiling |
For an adjustable rate mortgage (ARM), the maximum interest rate, as specified in
the mortgage note.
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Installment Loan |
Borrowed money that is repaid in equal payments, known as installments. A furniture
loan is often paid for as an installment loan. |
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Interest Rate Floor |
For an adjustable rate mortgage (ARM), the minimum interest rate, as specified in
the mortgage note. |
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Insurable Title |
A property title that a title insurance company agrees to insure against defects
and disputes. |
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Investment Property |
A property that is not occupied by the owner.
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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. |
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IRA (Individual Retirement Account) |
A retirement account that allows individuals to make tax-deferred contributions
to a personal retirement fund. Individuals can place IRA funds in bank accounts
or in other forms of investment such as
stocks, bonds, or mutual funds.
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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. |
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