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GLOSSARY 'I' |
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1. |
Impound Account:
Funds retained by a lender to cover such items as taxes and hazard insurance premiums.
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2. |
Income Approach:
An appraisal technique that estimates the value of a piece of property by the capitalization of the net income of the property.
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3. |
Index:
A published interest rate used to establish the loan's interest rate. The index is not controlled by the lender. The index and the interest rate linked to it may increase or decrease.
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4. |
Inspection:
An examination of a property to determine quality for an assessment of structural or termite damage.
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5. |
Installment Debt:
Borrowed money that is repaid at regular intervals, for a specific amount and term.
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6. |
Interest Rate:
A percentage of the amount of a loan paid for the use of money for a specified time.
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7. |
Interest Rate Cap:
A limit on interest rate increases and/or decreases during each adjustment or over the term of the mortgage.
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8. |
Interest Rate Floor:
On an ARM, the lowest the interest rate may go.
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9. |
Interim Financing:
A loan made during the construction of a building or a project.
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10. |
Investor:
Any entity that invests in mortgages or mortgage backed securities.
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11. |
Investor Purchase:
The purchase of a home for the purpose of generating income.
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12. |
IRS 4506/B 821:
IRS Form required by lenders on self-employed loan applications, allowing the lender to pull tax returns on the borrower directly from the IRS.
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