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.
