Income
Property
Real estate developed or improved with the
purpose of its existence being to produce
income.
Indemnify
To compensate someone for loss or damage.
Indemnity
Agreement
An agreement by which one party agrees to
repay another for any loss or damage the latter
may suffer.
Independent
Contractor
A person who is hired to do work for another
person but who is not an employee or agent
of that person. The hiring person is not responsible
for the actions of the Independent Contractor
nor does he/she owe that Independent Contractor
the same legal duties owed by an Employer
to an Employee under labor and employment
laws.
Index
A number used as the basis for adjusting the
interest rates of adjustable rate loans (ARM).
Commonly used indexes are the Prime Rate,
the LIBOR and 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.
Inflation
The rise in price of goods and services, or
Consumer Price Index (CPI), when there is
an increase in the amount of money or credit
available in relation to the amount of goods
or services available. Moderate inflation
is a result of economic growth. Hyperinflation
(rising at rates of 100% or more annually)
causes people to lose confidence in their
economy and put their money in hard assets
such as gold and real estate. Over time, inflation
reduces the purchasing power of a dollar,
making it worth less.
Infrastructure
The network of public facilities located within
the community such as roads, parks, schools,
sewers, utilities, etc.
Inheritance
Taxes
The state-imposed taxes on real and personal
property received through an inheritance.
Initial Interest
Rate
The introductory interest rate on a loan;
signals that there may be rate adjustments
later in the loan. This rate changes for an
adjustable-rate mortgage (ARM). Sometimes
known as "start rate" or "teaser."
Inner
City
A term for the older, central residential
area of a municipality which, in many cases,
has deteriorated into poverty.
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. Also Installment Note.
Installment
Sales Contract
A contract in which the buyer will pay installment
payments to a seller. Title remains vested
in the seller until the contracted purchase
price is paid in full.
Institute
of Real Estate Management
A professional organization of property managers.
Affiliated with the National Association of
Realtors.
Insurable Title
A property title that a title insurance company
is willing to insure.
Insurance
A promise of compensation for specific potential
future losses in exchange for a periodic payment.
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 binder's expiration
date.
Insurance
Coverage
The total amount of insurance carried stated
in monetary limits.
Insured Mortgage
A mortgage that is protected by the Federal
Housing Administration (FHA) or by private
mortgage insurance (MI). If the borrower defaults
on the loan, the insurer must pay the lender
for the lesser of the insured amount or remaining
loan balance.
Interest
The fee charged for borrowing money for a
specified period of time.
Interest Accrual
Rate
The rate, stated as a percentage, at which
interest accumulates on a mortgage.
Interest
Only Loan
The borrower pays only the interest that accrues
on the loan balance each month. Therefore,
each payment goes toward interest and the
loan balance does not get reduced.
Interest Rate
The rate of interest in effect for the monthly
payment due.
Interest Rate
Buydown Plan
An arrangement wherein the property seller
(or 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 specified
period, the mortgagor's effective interest
rate has been "bought down" below
the actual interest rate.
Interest Rate
Ceiling
For an adjustable-rate mortgage (ARM), the
maximum rate of interest that a financial
institution can charge for an adjustable rate
mortgage or loan.
Interest Rate
Floor
For an adjustable-rate mortgage (ARM), the
minimum interest rate that could be charged,
as specified in the mortgage note.
Investment
Property
A property that is not occupied by the owner—usually
purchased specifically to generate profit
through rental income or capital gains.
Investment
Tax Credit
A tax credit allowed under federal law usually
calculated as a fixed percentage of qualifying
investments in scientific research and experimental
development and in certain regions. It is
designed to assist growth in specific business
sectors.
IRA
(Individual Retirement Account)
A retirement account that allows individuals
to make tax-deferred contributions to a personal
retirement fund, with earnings tax-deferred
until withdrawals begin at age 59 1/2 or later
(or earlier, with a 10% penalty). Individuals
can place IRA funds in bank accounts or in
other forms of investment such as stocks,
bonds, or mutual funds.
IREM
see Institute
of Real Estate Management
The
definitions of Real Estate Definitions found
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only. All information is subject to change
and should be independently verified. 10Realty.com
makes no representations or warranties of
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found on the pages therein. 10Realty.com assumes
no responsibility for any liabilities or losses
claimed or incurred as a result of using this
information. (Real Estate Terms, Investment
Terms, Banking Terms explained, definitions,
legal definitions, legal terms and definitions)
