income
property
Real estate developed or improved to produce
income.
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.
in-file credit report
An objective account, normally
computer-generated, of credit and legal
information
obtained from a credit repository.
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 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."
installment
The regular periodic payment that a borrower
agrees to make to a lender.
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 (MI). If the borrower
defaults on the loan, the insurer must pay
the
lender the lesser of the loss incurred or the
insured amount.
interest
The fee charged for borrowing money.
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.
interest rate
The rate of interest in effect for the monthly
payment due.
interest rate buy down 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.
interest rate ceiling
For an adjustable-rate mortgage (ARM), the
maximum interest rate,
as specified in the
mortgage note.
interest rate floor
For an adjustable-rate mortgage (ARM), the
minimum interest rate,
as specified in the
mortgage note.
investment property
A property that is not occupied by the owner.
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.
