| Impound Account | Account held by a lender for payment of taxes, insurance or other related expenses. Also known as an escrow account. |
| Improvement | Valuable additions to property which raise the value of the property. |
| In testate | Someone who has died without leaving a valid will. |
| Income Property | Real estate developed or improved to produce income. |
| Index | (Also called Rate Index). A regularly published rate, independent of the lending institution, that measures the prevailing cost of funds, and is used periodically with the margin to set AML accrual rates. |
| 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. Over time, inflation reduces the purchasing power of a dollar, making it worth less. |
| Initial Borrower Interest Rate | The rate on which the borrower's first payment is calculated. |
| Initial Borrower Payment Rate | The annual interest rate used to calculate the borrower's initial cash payment. |
| Initial Interest Rate | The original interest rate of the mortgage at the time of closing. |
| 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. A furniture loan is often paid for as an installment loan. |
| Installment Sale | A tax term used to describe a sale which is usually accomplished by use of a land contract. |
| Insurable Title | A property title that a title insurance company agrees to insure against defects and disputes. |
| Insurance | 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. |
| 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 mortgage insured against loss to the mortgagee (lender) in the event of default and failure of the mortgaged property to satisfy the balance owing plus cost of foreclosure. If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount. |
| 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, although it is not used for an adjustable-rate mortgage (ARM) with payment change limitations. |
| Interest Payment Notification (1098) | A federal tax form that lenders use at year end to notify borrowers of the interest that was paid on their mortgage over the last year. |
| Interest Rate | The percentage of an amount of money which is paid for its use for a specified time. The fee charged for borrowing money. |
| Interest Rate Cap | A provision of an ARM limiting how much interest rates may increase per adjustment period. |
| 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. |
| Investment Property | A property that is not occupied by the owner and in most cases produces income or is held for gains from appreciation. |
| IRA (Individual Retirement Account) | A retirement account that allows individuals to make tax-deferred contributions to a personal retirement fund. Individuals can place IRA funds in bank accounts or in other forms of investment such as stocks, bonds, or mutual funds. |
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