The Following are real estate terms and topics: Starting With the Letter (I)

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The Following are real estate terms and topics: Starting With the Letter (I)

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

Are you confused and overwhelmed by the extensive terms and words used in real estate? Every person working in real estate or planning to buy or sell real estate can benefit from learning some of the terms….

Real Estate Terms I

Implied Contract
A contract inferred from the actions of various parties, but is not necessarily written or spoken.

Income property
Real estate developed, purchased or improved to produce income.

In-file credit report
Unverified credit report which may contain unchecked, duplicated or overlapping data, Used for “quick look” at a prospective borrower’s credit history.

Inflation
An increase in the amount of money or credit available in relation to the amount of goods or services available, which causes an increase in the general price level of goods and services.

Initial interest rate
The original interest rate of the loan when it is closed.

Installment
The regular periodic payment that a borrower agrees to make to a lender.

Installment loan
Borrowed money that is repaid in equal payments, known as installments.

Insurable title
Title that a title insurance company is willing to insure.

Insurance
A contract in which one party agrees to compensate another party for any losses or damages caused by risks identified in a contract in exchange for the payment of a lump sum or periodic amounts of money.

Insurance binder
A document that states that insurance is temporarily in effect. Because the coverage will expire by a specified date, a permanent policy must be obtained before the expiration date.

Insured mortgage
A loan secured against land for which an insurance policy exists promising to compensate the lender for all losses

Interest
The fee, paid on borrowed capital.

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
An interest rate is the price a borrower pays for the use of money he does not own, and the return a lender receives for deferring the use of funds, by lending it to the borrower. Interest rates are normally expressed as a percentage rate over the period of one year.

Interest rate buydown plan
a temporary buydown gives a borrower a reduced monthly payment during the first few years of a home loan and is typically paid for in an initial lump sum made by the seller, lender, or borrower.

Interest rate ceiling
The highest interest rate possible under an ARM contract; same as “lifetime cap.” It is often expressed as a specified number of percentage points above the initial interest rate.

Interest rate floor
The lowest interest rate possible under an ARM contract. Floors are less common than ceilings.

Investment property
A property purchased for the sole purpose of earning a return on the investment, either in the form of rent or capital gain. The owner does not live in the property.

IRA (Individual Retirement Account)
A retirement account that allows individuals to make tax-deferred contributions to a personal retirement fund.

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