| Identity of Interest |
Any interest between the buyer and seller
other than the subject property, i.e., family relationship (parent
selling to child), affiliation through business arrangement (employer
selling to employee), etc.
|
| Impound
|
Portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease
payments, and other items as they become due. Known as escrows or
reserves in some states.
|
| Improved Land |
Land having utilities, roads, or other improvements.
|
| Improvements
|
Additions to raw land that normally increase its value,
such as buildings, streets and sewers.
|
| Inclusionary Zoning |
Practice by which state or local governments
impose zoning restrictions that require a specified percentage of new
development in a designated area to be set aside to provide housing for
low-and moderate-income persons.
|
| Incurable Depreciation |
Deterioration of an item that it is either
impossible or economically infeasible to restore, correct, or replace.
|
| Index |
Number derived from a formula to characterize a set of data,
which serves as an indicator for determining interest rate changes on ARMs/GPARMs. For any specific interest rate change date, the index will
be the value that is most recently available 45 days prior to that date
(for our standard plans. FHA ARMs and some negotiated ARM plans may
specify a different number of days.)
|
| Indirect Costs (Soft Costs)
|
Construction costs other than labor and
materials. These include, but are not limited to, architect fees,
building permits, builder profit and overhead, temporary utilities for
the job site, soils reports.
|
| Inducements to Buy |
See Sales Concessions.
|
| In-File Credit Report
|
Objective account, normally computer-generated,
of credit and legal information obtained from a credit repository.
|
| INITIAL ADJUSTMENT CAP |
This is the 1st rate adjustment on an adjustable rate mortgage loan.
|
| Initial Interest Rate |
Original interest rate of the mortgage when it
is closed. This rate changes for adjustable-rate mortgages.
|
| INQUIRIES
|
An indication of credit investigations made by companies that are
considering granting credit to a person who appears on the credit
report.
|
| Inspection Report |
Ordered by OTC-PC or CMD Construction Lending upon
receipt of a Draw Request form from the borrower(s) and/or
builder/contractor.
|
| Installment Debt |
Borrowed money that is repaid in several successive
payments, usually at regular intervals, for a specific amount and for a
specified term. Example: an automobile loan or furniture loan.
|
| Institutional Lender |
Financial institution that invests in mortgages
and keeps them in its own portfolio.
|
| INSTRUCTIONS TO TITLE
|
A form that instructs the title company how to record a lien against a
property and issue a title insurance policy. Same as TITLE INSTRUCTIONS.
|
| INTEREST |
Money charged over time for the use of money.
|
| INTEREST BEARING |
A form of interest calculation in which the loan is charged at a daily
or monthly rate on the current outstanding balance.
|
| INTEREST RATE |
Percentage paid for the use of money, usually expressed as an annual
percentage.
|
| Interest Rate Buydown Plan |
Arrangement in which the property seller
(or any other party) deposits money to an account so that it can be
released each month to reduce the mortgagor's monthly payments during
the early years of a mortgage. During the specific period, the
mortgagor's effective interest rate is "bought down" below the actual
mortgage interest rate.
|
| Interest Reserves |
A reserve account that holds an estimated interest
amount that will be due on the loan during the construction phase of an
OTC loan. Most Lenders will advance the interest due as necessary from
this account to pay the monthly-accrued interest. Any funds remaining in
this account at the completion of construction will be applied to the
permanent loan as a principal reduction with new P & I.
Calculation: Loan Amount x Interest Rate x 60%/ 12 x Construction Term.
|
| INVESTMENT INCOME |
Money earned from investments of money, such as stock dividends and
annuity payments.
|
| INVESTMENT PROPERTY |
Property used for investment purposes.
|
| INVOLUNTARY LIEN |
| A lien imposed against property by law or legal action without the
consent of an owner. Examples include taxes, special assessments,
federal income tax liens, judgment liens, mechanics liens and materials
liens. See also LIEN. |
