A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
H
- Impound
Portion of the borrower's monthly payment collected by the lender or servicer to pay
taxes, hazard insurance, mortgage insurance, and other items as they become due. Also
known as reserves.
- In-file credit report
An objective account, normally computer-generated, of credit and legal information
obtained from a credit repository.
- Index
A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The
index is generally a published number or percentage, such as the average interest rate or
yield on Treasury bills. A margin is added to the index to determine the interest rate
that will be charged on the ARM.. This interest rate is subject to any caps that are
associated with the mortgage.
- Indexed
rate
The sum of the published index plus the margin. For example if the index were 9% and the
margin 2.75%, the indexed rate would be 11.75%. Often, lenders charge less than the
indexed rate the first year of an adjustable-rate mortgage.
- Initial
interest rate
This refers to the original interest rate of the mortgage at the time of closing. This
rate changes for an adjustable-rate mortgage (ARM). It's also known as "start
rate" or "teaser."
- Installment
The regular periodic payment that a borrower agrees to make to a lender.
- Insured
mortgage
A mortgage that is protected by the Federal Housing Administration (FHA) or by private
mortgage insurance (MI).
- Interest
The fee charged for borrowing money.
- Interest accrual rate
The percentage rate at which interest accrues on the mortgage. In most cases, it is also
the rate used to calculate the monthly payments.
- Interest
rate
The rate of interest in effect for the monthly payment due.
- Interest
rate buydown plan
An arrangement that allows the property seller to deposit money to an account. That money
is then released each month to reduce the mortgagor's monthly payments during the early
years of a mortgage.
- Interest rate ceiling
For an adjustable-rate mortgage (ARM), the maximum interest rate, as specified in the
mortgage note.
- Interest
rate floor
For an adjustable-rate mortgage (ARM), the minimum interest rate, as specified in the
mortgage note.
- Interest rate
swap
A transaction between two parties in which each agrees to exchange payments tied to
different interest rates or indices for a specified period of time, generally based on a
notional principal amount.
- Interim
financing
A construction loan made during completion of a building or a project. A permanent loan
usually replaces this loan after completion.
- Intermediate-term
mortgage
A mortgage loan with a contractual maturity at time of purchase equal to or less than 20
years.
- Investor
Money source for a lender.
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
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