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 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.
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.
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