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Frequently
Asked Questions
Glossary
of Real Estate Terms
Glossary for "I"
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.
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