Definitions - I

Impound Account

Account held by a lender for payment of taxes, insurance, or other.

Incidental Recording, Delivery, Wire, etc., Fees

Other cost that are incurred when a real estate loan is closed.

Independent Contractor

The term is most important as used to describe the relationship of broker and salesperson, employee or independent contractor. If employee, the broker must withhold income tax and pay social security, provide workmen's compensation, and may be liable for some negligent acts of the sales person while on the job. All of this is avoided by the broker if salesperson is an independent contractor.

Index

A published rate or benchmark measure of current interest rate levels used to calculate periodic changes in rates charged on adjustable rate mortgages. You should ask your lender how the index for any ARM you are considering has change in recent years, and where it is reported.

Installment Sale

A tax term used to describe a sale which is usually accomplished by use of a land contract.

Insured Mortgage

A mortgage insured against loss to the mortgagee in the event of default and failure of the mortgaged property to satisfy the balance owing plus cost of foreclosure.

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.

Investment Property

A property that is a not occupied by the owner and in most cases receives income off the property.