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Impound Account |
| An account that holds the funds the mortgager pays to the lender along with their monthly principal and interest payments for the payment of real estate 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. |
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Impounds |
| 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 estate 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. |
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Income Property |
| Real estate developed and improved to produce steady income. |
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Index |
| 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). |
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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. |
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In-File Credit Report |
| A computer-generated report containing credit and legal information obtained from one of the main credit bureaus. |
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Inflation |
| 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. |
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Initial Interest Rate |
| 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 |
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Installment |
| A regularly scheduled periodic payment that a borrower agrees to make to a lender. |
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Installment Loan |
| Borrowed money that is repaid in equal periodic payments. Cars and furniture are often paid for with installment loans. |
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Insurable Title |
| A property title that a title insurance company agrees to insure against defects and claims. |
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Insurance Binder |
| A document that confirms insurance coverage is in place, or will be in place as of a specified date. Because the coverage will expire by a certain date, a permanent policy must be obtained prior to the expiration date. |
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Insured Mortgage |
| 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. |
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Intangible Tax |
| A tax charged in the State of Florida anytime a new mortgage is obtained. |
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Interest |
| The cost of the use of money. |
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Interest Accrual Rate |
| The rate at which interest accrues on a mortgage. Usually, it is also the rate used to calculate the monthly payments. |
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Interest Rate |
| 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. |
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Interest Rate Buy-Down Plan |
| 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. |
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Interest Rate Caps |
| A limit on the amount that can be charged to the monthly payment of an adjustable rate mortgage during an adjustment period. |
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Interest Rate Ceiling |
| The maximum interest rate for an adjustable rate mortgage (ARM), as specified in the mortgage loan note. |
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Interest Rate Floor |
| The minimum interest rate for an adjustable rate mortgage (ARM), as specified in the mortgage loan note. |
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Interest-Only Loan |
| A loan where 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. |
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Interim Interest |
| The interest due at closing to cover interest due that will not be collected with the first payment. Typically, interim interest is collected from the closing date through the last day of the month in which the loan is closed. |
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Investment Property |
| A property that is not occupied by the owner. Generally, investment property is rented to generate a cash flow to offset the cost of ownership. |
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