· Impact
fees Fees collected from developers of new
homes to pay for schools, parks and other facilities.
· Implied
warranty of habitability Court cases which
determined 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.
· 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 that
would cost too much to repair relative to the value of
the property.
· Index Financial
tables used by lenders to calculate interest rates on
adjustable mortgages and on Treasury bills.
· Individual
Retirement Account Tax-deferred savings
accounts that allow people to accrue retirement funds.
· In-file
credit report Computer-generated reports drawn
from credit repositories that are generally regarded as
objective histories.
· Infill
development Any significant new construction in
an established area.
· Infill
housing Home construction in established areas.
· Inflation This
event 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 mortgage.
· Inspection
report An examination of a home's exterior,
foundation, framing, plumbing, electrical system,
heating, air conditioning, fireplace, kitchen, bathroom,
roofing and interior.
· Installment
contract A purchase agreement in which the
buyer does not receive title to the property until all
installments are paid.
· Insulation Materials
including cellulose, glass fiber, rock wool,
polystyrene, urethane foam and vermiculite that slow
heat loss.
· 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:
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.
· Interest
accrual rate The rate at which interest accrues
on a mortgage.
· Interest-only
loan The 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.
· Interest
rate The sum, expressed as a percentage,
charged for a loan. Interest payments on most home loans
are tax- deductible.
· 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 caps A limit on the amount that can be
charged to 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.
· Investment
property Real estate that generates income,
such as an apartment building or a rental house.
