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impact fees
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 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. |
improvement
A change
that adds value to a house, prolongs its useful life, or adapts it to new
uses. |
in-file credit report
A computer-generated report drawn from credit repositories and
generally regarded as an objective history. |
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 one that would cost too much to repair relative to the value of the
property. |
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. Most real estate agents are
independent contractors. |
index
Financial
tables used by lenders to calculate interest rates on adjustable mortgages and
on Treasury bills. |
Individual Retirement Account
(IRA)
A tax-deferred savings account in which a
person may accrue retirement funds. |
infill development
Any significant new construction in an established
area. |
infill housing
Home construction in established areas. |
infiltration
Air from
the environment that penetrates a building. |
inflation
Inflation
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. |
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infrastructure
The
roads, schools, parks, utilities, bridges, and communications systems in a
community. |
initial interest rate
The original interest rate on an adjustable rate
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
A fee
paid to determine the present physical condition of the home, required by the
lender in order to supplement the information contained in the appraisal
report. |
inspection report
An
examination of a home's exterior, foundation, framing, plumbing, electrical
system, heating, air conditioning, fireplace, kitchen, bathroom, roof, and
interior. |
installment contract
A purchase agreement in which the buyer does 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
Owners and
buyers can purchase various types of insurance including 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. |
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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
fee, expressed as a percentage, charged for a loan. The interest rate also helps
determine the monthly payment. For adjustable-rate loans, the interest rate may
change from its initial level. |
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 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 a lender can charge for an adjustable rate
mortgage. |
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
house. |
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