IMPROVED LAND:
Also known as "developed land". Opposite of "raw or vacant land".
IMPROVEMENTS:
Things added to vacant land with the view to increasing its usefulness and value, such as buildings, parking areas, drainage works, etc.
IMPUTED INTEREST:
Interest which is deemed to have been charged on a loan by a court.
IN REM:
Latin term meaning "Against the thing." Used to describe a legal action which is taken against land rather than against the land owner, such as a bank's foreclosure on a defaulted mortgage.
INCOME PROPERTY:
A property which is owned or developed specifically to produce income for its owner.
INDEX:
Any rate published by an independent third party (the government, the federal bank, etc.) which serves as the base for calculating a variable item in a contract. (A Variable or Adjustable Rate Mortgage may use the Federal Bank's monthly prime interest rate as the index for the interest charged under that mortgage).
INDEXED LOAN:
Any loan whose interest rate is adjusted in accordance with a rate published by an independent third party (an "index").
INDUSTRIAL PROPERTY:
A plot of land used for a factory or other industrial use.
INFRASTRUCTURE:
Term for the public-use improvements made to an area such as sewers, roads, bridges, and public utility installations.
INITIAL INTEREST RATE:
The rate chargeable on a mortgage on the day it is signed.
INITIAL RATE PERIOD:
The period of time for which the "initial interest rate" is guaranteed on a Variable or Adjustable Rate mortgage before it begins to change according to its "index".
INSPECTOR:
Any person charged with the task of making a physical examination of a person, document or other thing. Could be employed by a government body (i.e. an electrical inspector, fire inspector) or by a potential purchaser (a home inspector).
INSTALLMENT:
A regular periodic payment.
INSTALLMENT LOAN:
A loan which is paid back in periodic payments.
INSURABLE VALUE:
The cost of replacement of all improvements to a property which could conceivably be destroyed.
INSURED MORTGAGE:
A loan secured against land for which an insurance policy exists promising to compensate the lender for all losses and costs resulting from the borrower's failure to meet her obligations under the loan agreement.
INTEREST:
The cost of borrowing money, charged as a percentage of the outstanding amount owed.
INTEREST ADJUSTMENT DATE:
The date upon which the borrower is required to pay accrued interest on the borrowed principal under a mortgage, which date falls one full payment interval before the first payment date as set out in the agreement. For example, if a mortgage is advanced on May 15 to be paid on the first day of each month, June 1 would be the interest adjustment date and July 1 the first payment date. On June 1, the borrower would be required to pay the interest that has accrued on the principal since the date of the advance (May 15).
INTEREST ACCRUAL RATE:
The rate, stated as a percentage, at which interest accumulates on a mortgage.
INTEREST PAYMENT:
The portion of each periodic payment on a loan, expressed in dollars, which is allocated toward accrued interest.
INTEREST RATE ADJUSTMENT PERIOD:
The length of time between changes in interest rate on an Adjustable or Variable Rate Mortgage.
INTEREST RATE BUY DOWN PLAN:
A method of reducing the effective interest charged to a borrower. A third party (often a vendor) deposits a lump sum into an account, portions of which are then used to reduce the amount required from the borrower for each periodic payment over a set period of time.
INTEREST RATE CAP:
A clause in an Adjustable or Variable Rate Mortgage which limits the change in the interest rate charged. May limit change within a single adjustment period or over the life of the mortgage.
INTEREST RATE CEILING:
The highest rate of interest chargeable under a Variable or Adjustable Rate Mortgage, as set out in the mortgage contract.
INTEREST RATE FLOOR:
The lowest rate of interest chargeable under a Variable or Adjustable Rate Mortgage, as set out in the mortgage contract.
INTEREST-ONLY LOAN:
A debt for which the periodic payments are enough to pay only the interest which accumulates on the principal over the payment period. Principal is due at maturity.
INTERIM FINANCING:
A construction loan to pay for costs up to completion.
INTERSTATE LAND SALES ACT:
Federal law administered by HUD regulating the practice of the sale of land between people in different states.
INVESTMENT PROPERTY:
A piece of real estate that is owned for the purposes of financial gain, either through appreciation in value or through income from the property.
INVOLUNTARY CONVERSION:
Loss of land through natural forces or through government action.
INVOLUNTARY LIEN:
A claim registered against a property without the consent (and sometimes without the knowledge of) the owner of the land.
IRREVOCABILITY DATE:
Time and day specified in an offer until which the offeror may not retract the offer, until which the offeree may accept the offer.
IRREVOCABLE:
Unchangeable. Not able to be recalled.
JOINT OWNERSHIP AGREEMENT:
A contract between two or more people who have an interest in the same piece of property which sets out their respective rights and obligations with regard to the property and also may set out the way in which the parties agree to manage the property.
JOINT TENANCY:
A way in which two or more people may hold title to property together. Owning as joint tenants means each owner has an equal right to the entire property, that none of the owners may sell, bequeath or encumber their portion of the property without the consent of the other owners and that, in the event of the death of one of the owners, the surviving owners automatically retain title to the entire property by "Right of Survivorship". Compare with "tenants in common".
JUDGMENT:
A decision rendered by a court. If a monetary award is involved, it may become a lien on property owned by the losing party.
JUDGMENT CREDITOR:
A party who, by virtue of a court decision, is entitled to a monetary payment from another party.
JUDGMENT DEBTOR:
A party who, by virtue of a court decision, is required to make a monetary payment from another party.
JUDGMENT LIEN:
A general lien which applies to all property owned by a judgment debtor located in the county where the judgment is recorded.
JUDICIAL FORECLOSURE:
An enforcement action by a lender, the act of selling the property to recover the mortgage debt after obtaining judgment of a court.
JUNIOR LIEN (MORTGAGE):
A claim against property which is behind at least one other lien in priority.
JUST COMPENSATION:
Payment of a fair and reasonable amount for property taken from a private person by a government body.
