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Implied Contract - Legal agreement, or contract, formed by the actions of the parties rather than by their written or verbal agreement. |
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Impound Account - Account in which money is held by a mortgage servicer, on behalf of a homeowner, for the payment of certain charges that regularly accrue to the homeowner, such as property taxes and hazard insurance premiums. Sometimes called a "reserve account," an "escrow reserve account," or "escrow reserves." See also, escrow account.
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Improvement - Any
permanent addition to land; includes buildings, driveways, streets, sidewalks,
wells, septic systems, sewers, etc.
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Income Property - Real estate that produces income, usually from rental. See also, investment property.
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Index - Numerical statistic used as a financial indicator in capital markets; used by lenders as a point to which changes in adjustable-rate mortgages can be tied. Commonly used indexes are Treasury Index, Certificate of Deposit Index, Cost of Funds Index, Prime Rate and the London Inter-Bank Offered Rate (LIBOR). In changing rates for ARMs, lenders add
a specified percentage (or margin) to the index at times specified in the loan note (usually subject to a cap, or maximum).
See also, adjustable rate mortgage.
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In-File Credit Report - Report of historical credit data usually drawn from the files of a single credit repository. |
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Inflation - Any general increase in the cost of living attributable to excessive demand for goods or services, or to a relative devaluation of the value of money because of an increase in its supply. |
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Initial Interest Rate - See teaser rate. |
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Inspection - Examination of a property to determine quality or condition, as in a home inspection or a septic inspection. See also, home inspection. For more information about inspections, CLICK HERE.
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Installment - Part of a recurring event; periodic payment. |
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Installment Loan - Loan repaid through payments made at specified intervals. |
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Installment Note - Document containing a written promise to repay a loan in installments. |
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Insurable Title - Title to real property that a title insurance company has agreed to insure against defects and disputes. |
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Insurance - Financial product that provides compensation in the event of a loss in exchange for a periodic payment in advance. A contract for insurance coverage is known as an "insurance policy," and the periodic payment is known as an "insurance premium." |
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Insurance Binder - Contract for temporary insurance coverage that is provided until a regular policy document is obtained. Most insurance binders expire after a set period, usually about 30 days. See also, binder. |
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Insurance Company - Business that agrees to compensate an insured for a certain type of loss. Typically, an insured pays a premium for this indemnification, and the insurance company pools the assets of all insured clients in order to pay claims. Insurance companies also use premiums to make investments, including making real estate loans. See also, finance company.
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Insurance Reserves
- See reserves.
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Insured Mortgage - Real estate loan protected by the Federal Housing Administration or by private mortgage insurance (PMI). When a borrower defaults on an insured loan, the insurer must pay the lender the insured amount or the actual loss incurred, whichever is less. See also, mortgage insurance. |
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Interest - (1) Fee charged for the privilege of borrowing money. (2) Right, claim or share in something, especially property. |
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Interest Accrual Rate - See interest rate. |
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Interest Rate - Calculation of an amount of money paid as compensation for the use of other money, expressed as a percentage for a given period of time (usually one year). See also, annual percentage rate and nominal rate.
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Interest Rate Buydown Plan - Arrangement wherein a person deposits money to an account so that it can be released each month for a specified period of time to reduce another person's monthly mortgage payments. Because of other party's contribution, the borrower's effective interest rate is reduced, or "bought down," below the actual interest rate. |
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Interest Rate Ceiling - Maximum interest rate, as specified in a mortgage note, for an adjustable-rate mortgage. |
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Interest Rate Floor - Minimum interest rate for an adjustable-rate mortgage. |
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InterestFirst™ Mortgage - Fannie Mae loan program for one-unit residential properties that allows the borrower to make payments of only interest during the first 10, or first 15, years on a fixed-rate loan, thus keeping monthly payments lower in this initial period. InterestFirst™ adjustable rate mortgages also are available. |
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Investment Banker - Large institutional investor that uses funds from clients' investment packages to fund mortgage lending activities. See also, finance company.
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Investment Property - Generally, any real estate purchased with the primary expectation and purpose of later profit, whether by the production of income or by resale.
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