Improvements
Valuable additions to the land, such as buildings, fences,
roads, etc., which increase the value of the property.
Implied warranty of habitability
A legal doctrine that requires landlords to offer and
maintain livable premises for their tenants. If a landlord
fails to provide habitable housing, tenants in most
states may legally withhold rent or take other measures,
including hiring someone to fix the problem or moving
out.
Incidents of ownership
Any control over property. If you give away property
but keep an incident of ownership--for example, you
give away an apartment building but retain the right
to receive rent--then legally, no gift has been made.
This distinction can be important if you're making large
gifts to reduce your eventual estate tax.
Income approach to value
An estimate of value based on the monetary returns that
a property can be expected to generate; capitalization.
Contrast with the cost approach to value and the market
data approach to value.
Income property
Real estate developed or improved to produce income.
Independent School District
In Texas, all but one of the state's school districts
are considered "Independent" since they do
not fall under the direct control of any other local
government, and their boundaries are not constrained
by any city or county border lines. Each district is
run by an elected school board, which appoints a superintendent
and sets budgets and tax rates. Only the State of Texas
has the authority to regulate and oversee the actions
of an Independent School District.
Inspection
An examination of a property by the buyer, agent, title
insurance company, or other interested party.
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.
Ingress
An entrance, or the act of entering. Compare egress.
In-file credit report
An objective account, normally computer-generated, of
credit and legal information obtained from a credit
repository.
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 interest rate
The original interest rate of the mortgage at the time
of closing. This rate changes for an adjustable-rate
mortgage (ARM). Sometimes known as "start rate"
or "teaser."
Inspection clause
A stipulation in an offer to purchase that makes the
sale contingent on the findings of a home inspector.
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.
Insurable title
A property title that a title insurance company agrees
to insure against defects and disputes.
Insurance
A contract that provides compensation for specific losses
in exchange for a periodic payment. An individual contract
is known as an insurance policy, and the periodic payment
is known as an insurance premium.
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 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 the lesser of the loss incurred
or the insured amount.
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, although it is not used
for an adjustable-rate mortgage (ARM) with payment change
limitations.
Interest rate
The rate of interest in effect for the monthly payment
due.
Interest rate buydown plan
An arrangement wherein 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 specified period, the mortgagor's effective interest
rate is "bought down" below the actual interest
rate.
Interest rate ceiling
For an adjustable-rate mortgage (ARM), the maximum interest
rate, as specified in the mortgage note.
Interest rate floor
The rate of interest in effect for the monthly payment
due.
Interest Only Loan
A term loan arrangement calling for payments of interest
only, not to include any amount for principal.
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.
Intermediate-Term Mortgage
A mortgage loan with a stated maturity at the time of
purchase that it is equal to or less than 20 years.
Intimidation
As defined in the fair housing laws, it is the illegal
act of coercing, intimidating, threatening, or interfering
with a person in exercising or enjoying any right granted
or protected by federal, state or local fair housing
laws.
Investment property
A property that is not occupied by the owner.
Invitee
A business guest, or someone who enters property held
open to members of the public, such as a visitor to
a museum. Property owners must protect invitees from
dangers on the property. In an example of the perversion
of legalese, social guests that you invite into your
home are called "licensees."
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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