I
Go top |
impact fees
Fees collected from developers of new homes to
pay for schools, parks, and other facilities. |
implied warranty of habitability
Legal doctrine stating that all
new homes are assumed to be fit for human habitation
and meet all building codes. |
impounds
A portion of the monthly mortgage payment that
is placed in an account and used to pay for hazard
insurance, property taxes and private mortgage insurance. |
improvement
A change that adds value to a house, prolongs
its useful life, or adapts it to new uses. |
in-file credit report
A computer-generated report drawn
from credit repositories and generally regarded as
an objective history. |
I
Go top |
income property
Property that is not occupied by
the owner but is used to generate income. |
incurable defect
A defect in a property that cannot be fixed, such
as an adjacent hazardous waste site, or one that would
cost too much to repair relative to the value of the
property. |
independent contractor
A person hired to do a particular
job, subject to the direction of a supervisor. An
independent contractor pays for his or her own expenses
and taxes, and receives no employee benefits. Most
real estate agents are independent contractors. |
index
Financial tables used by lenders to calculate
interest rates on adjustable mortgages and on Treasury
bills. |
Individual Retirement Account
(IRA)
A tax-deferred savings account
in which a person may accrue retirement funds. |
infill development
Any significant new construction
in an established area. |
I
Go top |
infill housing
Home construction in established
areas. |
infiltration
Air from the environment that penetrates a building. |
inflation
Inflation occurs when there is more money available
than there are goods and services to be purchased.
Mortgage rates, which are determined by the marketplace
and the actions of the Federal Reserve Board and Wall
Street, are sensitive to inflation fears. |
infrastructure
The roads, schools, parks, utilities, bridges,
and communications systems in a community. |
initial interest rate
The original interest rate on an
adjustable rate mortgage. |
initial rate cap
A specific limit defined by some adjustable rate
loans (ARMs) for the maximum amount the interest rate
may increase at the expiration of the initial interest
rate. |
I
Go top |
initial rate duration
Most adjustable rate loans (ARMs)
offer an initial interest rate below the current market
rate. This initial or "teaser" rate expires after
a period called the initial rate duration, which may
last months or years. |
inlet valve
The mechanism inside a toilet tank that automatically
fills the tank with water when the tank empties. The
inlet valve is connected to the shutoff valve under
the toilet. |
inspection fee
A fee paid to determine the present physical condition
of the home, required by the lender in order to supplement
the information contained in the appraisal report. |
inspection report
An examination of a home's exterior,
foundation, framing, plumbing, electrical system,
heating, air conditioning, fireplace, kitchen, bathroom,
roof, and interior. |
installment contract
A purchase agreement in which the
buyer does not receive the title to the property until
all installments are paid. |
installment sale
A real estate transaction in which the sales price
is paid in installments. |
I
Go top |
instrument
A written legal document. |
insulation
Materials that slow heat loss, such as cellulose,
glass fiber, rock wool, polystyrene, urethane foam,
and vermiculite. |
insurable title
Title to property that a company agrees to insure
against defects and disputes. |
insurance
Owners and buyers can purchase various types of
insurance including hazard, private mortgage, and
earthquake. The policies guarantee compensation for
specific losses. |
insurance binder
A temporary insurance arrangement usually put
in force until a permanent policy can be obtained. |
interest
The fee borrowers pay to obtain a loan. It is
calculated based on a percentage of the total loan. |
I
Go top |
interest accrual rate
The rate at which interest accrues
on a mortgage. |
interest paid over life of
loan
The total amount paid to the lender
for the use of money during the time the money is
borrowed. |
interest rate
The fee, expressed as a percentage, charged for
a loan. The interest rate also helps determine the
monthly payment. For adjustable-rate loans, the interest
rate may change from its initial level. |
interest rate buy-down plans
For cash-short buyers, some sellers
are willing to advance funds from the sale of the
home to buy down the interest rate and reduce the
buyer's monthly obligation. |
interest rate cap
The maximum interest rate charge
allowed on the monthly payment of an adjustable rate
mortgage during an adjustment period. |
interest rate ceiling
The highest interest a lender can
charge for an adjustable rate mortgage. |
I
Go top |
interest-only loan
The borrower pays only the interest
that accrues on the loan balance each month. Because
each payment goes toward interest, the outstanding
balance of the loan does not decline with each payment. |
interim financing
Short-term financing used by sellers
to bridge the gap between the sale of one house and
the purchase of another (also known as bridge or swing
loans). A construction loan is also a form of interim
financing. |
investment property
Real estate that generates income,
such as an apartment building or a rental house. |
