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Illiquidity
- Top
Having
inadequate cash to meet current obligations. Real property is considered
an illiquid investment because of the time and effort required to
convert it to cash.
Implied
Agency - Top
Form
of agency that occurs when the words and actions of the parties
indicate that there is an agency relationship.
Implied
Contract - Top
A
contract created by actions, but not necessarily written or spoken.
Impound
Account - Top
A
fund set aside for future needs, such as an escrow or reserve account.
Impounds
- Top
An
impound refers to the funds a mortgagor pays to the lender along
with their monthly principal and interest payments for the payment
of real estates taxes and hazard insurance. This is also referred
to as an escrow account. The money is held by the lender to make
payments when they are due.
In-file
Credit Report - Top
A
computer-generated report containing credit and legal information
obtained from one of the main credit bureaus.
Income
Property - Top
Real
estate developed and improved to produce steady income.
Index
- Top
A
published interest rate used to establish the interest rate offered
on an Adjustable Rate Mortgage (ARM). Some of the most common indices
are treasury bills, treasury securities, London Inter-Bank Offering
Rates (LIBOR) and the Cost of Funds Index (COFI).
Index
of Leading Indicators - Top
An
index of eleven indicators designed to forecast the strength of
the economy six to nine months in the future. Frequency: monthly.
Source: Commerce Department.
Individual
Retirement Account - Top
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.
Industrial
Production - Top
A
fixed-weight measure of physical output of the nation's factories,
mines and utilities. Monthly percent changes in the index reflect
the rate of change in output. Changes in industrial production are
widely followed as a major indicator of strength in the manufacturing
sector. Frequency: monthly. Source: Federal Reserve.
Inflation
- Top
An
increase in the amount of money or credit available relative to
the amount of goods or services available. Inflation causes an increase
in the general price level of goods and services. Over prolonged
periods, inflation can reduce the purchasing power of a dollar,
making it worth less.
Initial
Interest Rate - Top
The
original, starting interest rate of a loan at the time of closing.
This rate changes for an adjustable-rate mortgage (ARM). Sometimes
called a teaser rate
Installment
- Top
A
regularly scheduled periodic payment that a borrower agrees to make
to a lender.
Installment
Loan - Top
Borrowed
money that is repaid in equal periodic payments. Cars and furniture
are often paid for with installment loans.
Insurable
Title - Top
A
property title that a title insurance company agrees to insure against
defects and claims.
Insurance
- Top
A
form of contract that provides compensation for specific losses
in exchange for a periodic payment. An individual contract is known
as an insurance policy. The periodic payments are known as insurance
premiums.
Insurance
Binder - Top
A
document stating that insurance is only temporarily in effect. Because
the coverage will expire by a certain date, a permanent policy must
be obtained prior to the expiration date.
Insured
Mortgage - Top
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.
Interest
- Top
The
cost of the use of money.
Interest
Accrual Rate - Top
The
rate at which interest accrues on a mortgage. Usually, it is also
the rate used to calculate the monthly payments.
Interest
Rate - Top
The
cost of borrowing a lender's money. Interest takes into account
the risk and cost to the lender for a loan. The interest rate on
a fixed rate mortgage depends on the going market rate and how many
discount points you pay up-front. An adjustable rate mortgage's
interest is a variable rate made up of the index and the lender's
margin.
Interest
Rate Buy-down Plan - Top
An
arrangement where the property seller, borrower or other party deposits
money to an account so that it can be released each month to reduce
the borrower's interest rate or monthly payments during a specified
period of a loan.
Interest
Rate Ceiling - Top
The
maximum interest rate for an adjustable-rate mortgage (ARM), as
specified in the mortgage loan note.
Interest
Rate Floor - Top
The
minimum interest rate for an adjustable-rate mortgage (ARM), as
specified in the mortgage loan note.
Investment
Property - Top
A
property that is not occupied by the owner.
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