I
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.
J
joint tenancy
A form of co-ownership that gives each tenant equal interest and equal rights in the property,
including the right of survivorship.
judgment
A decision made by a court of law. In judgments that require the repayment of a debt, the court may
place a lien against the debtor's real property as collateral for the judgment's creditor.
judgment lien
A lien on the property of a debtor resulting from the decree of a court.
judicial foreclosure
A type of foreclosure proceeding used in some states that is handled as a civil lawsuit and
conducted entirely under the auspices of a court.
jumbo loan
A loan that exceeds Fannie Mae’s mortgage amount limits. Also called a nonconforming loan.
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.
J
joint tenancy
A form of co-ownership that gives each tenant equal interest and equal rights in the property,
including the right of survivorship.
judgment
A decision made by a court of law. In judgments that require the repayment of a debt, the court may
place a lien against the debtor's real property as collateral for the judgment's creditor.
judgment lien
A lien on the property of a debtor resulting from the decree of a court.
judicial foreclosure
A type of foreclosure proceeding used in some states that is handled as a civil lawsuit and
conducted entirely under the auspices of a court.
jumbo loan
A loan that exceeds Fannie Mae’s mortgage amount limits. Also called a nonconforming loan.
| Real Estate and Loan Glossary of Terms |
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| Capital Real Estate and Loans Nannette Truong Kazan, Broker-Real Estate Specialist |
| Cell: 714 478-4940 |
| Fax: 949 266-8911 |
| Office: 949 679-3400 |
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