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 must 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( if applicable).
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 or would cost too much to repair
relative to the value of the property.
INDEMNITY
Insurance against possible loss or damage. A title
insurance policy is a contract of indemnity.
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.
Index
A measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage.
Indexed Rate
The sum of the published index
plus a margin. For example if the index were 5% and the margin
2.75%, the "fully indexed rate" would be 7.75%.
Infill
housing
Home construction in established areas.
Infiltration
Air from the environment that penetrates a building.
Inflation
The number of dollars in circulation exceeds the amount of goods and services available for purchase; inflation results in a decrease in the dollar's value.
Infrastructure
The utilities, roads, schools, parks and communications
systems in a community.
Initial interest rate
The original interest rate on an adjustable rate mortgage.
This rate may be subject to various adjustment at points throughout
the 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.
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
The fee paid to a licensed property inspector in order to determine the present physical condition of the
property.
Inspection report
A licensed property inspectors; written report of the property's
condition.
Installment contract
A purchase agreement where the buyers do 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.
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
Protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium.
Insurance binder
A temporary insurance arrangement usually put in force until a
permanent policy can be obtained.
Insured Mortgage
A mortgage that is insured
(guaranteed) by the Federal Housing Administration (FHA) or by
private mortgage insurance (PMI).
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 amount of interest charged on a monthly loan payment; usually expressed as a percentage.
Interest rate buy-down plans
For buyers with limited cash reserves 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 rate a lender can charge for an adjustable rate
mortgage.
Interest Rate
Floor
For an adjustable-rate mortgage (ARM), the minimum possible interest
rate, as specified in the mortgage note.
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 home.
