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 Loan Terms

Loan Definitions
Loan Terms (A)
Loan Terms (B)
Loan Terms (C)
Loan Terms (D)
Loan Terms (E)
Loan Terms (F)
Loan Terms (G)
Loan Terms (H)
Loan Terms (I)
Loan Terms (J & K)
Loan Terms (L)
Loan Terms (M)
Loan Terms (N)
Loan Terms (O)
Loan Terms (P & Q)
Loan Terms (R)
Loan Terms (S)
Loan Terms (T)
Loan Terms (U & V)
Loan Terms (W)
Loan Terms (X,Y,Z)


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The Mortgage Process


Loan Terms and Definitions (I)

Impound Account: An account established and used by a lender to collect and pay taxes, insurance, and other debts associated with a particular real estate transaction in which the lender pays at certain times of the year from funds that accumulate in the account.

Improved Land: Land that has been upgraded with buildings for purposes of housing, businesses, or cleared for farming or other uses. Improvements may include roads, street lights, and gas and water lines.

Income: The increase of wealth by getting paid for performing labor, farming, sales, services rendered, rents from property, investments, gambling, or any other source of personal or business revenue.

Income Property: Property used for the purpose of producing income, usually by renting to tenants. This includes farms, barns, houses, apartments, and other real property.

Income Tax: A levy assessed on annual income by governmental agencies such as the Internal Revenue Service (IRS) and state and local jurisdictions.

Incumbrance: Any liability, lien, charge, or claim that is placed on real estate by businesses, individuals, tax collecting organizations or other persons that bind the property and possibly affect the sale or transfer at a later date.

Independent Appraisal: An appraisal that is performed by an individual appraiser who has no interest in the property that is being appraised and has nothing to gain by placing a high or low value on it.

Indexing: The process of altering mortgage interest rates, terms, and agreements based on inflation using margins associated with U.S. Treasuries or other indexes as guidelines.

Insured Mortgage: A mortgage insured by F.H.A., V.A., or other mortgage insurance companies that provides protection for a lender against default, the cost of foreclosure, and other costs and remedies, if the borrower defaults on the loan.

Interest Only Mortgage: A mortgage that requires interest to be paid at intervals, usually monthly, without any of the payment being added to the principal. The principal is usually repaid in one lump sum at the end of the loan period.

Interest Rate: An interest rate is the amount charged by a lender to a borrower for the use of money over a specified period of time.

Interest Rate Cap: An interest rate cap places a maximum limit on how high or how low an adjustable rate mortgage (ARM) can increase or decrease.

Investment Property: Property that is purchased and used primarily for the purpose of making money, either from use as a rental or from it's resale.


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