Title Insurance Dictionary-Glossary

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Impound
That portion of a borrower's monthly payments held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves.

Income Approach
A method used by an appraiser to estimate the value of a property by calculating it's generated income.

Indemnity
A protection against actual loss or damage as a result of the matter mentioned. An indemnity is not an absolute guarantee that something won't happen, it states the terms under which an actual loss will be compensated.

Index
A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one- three-, and five-year U.S. Treasury security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average costs-of-funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down.

Ingress and Egress
Applied to EASEMENTS, meaning the right to go in and out over a piece of property but not the right to park on it.

Initial Note Rate
With regard to an adjustable rate mortgage, the note rate upon origination. This rate may differ from and is usually less than the fully indexed rate.

Institutional Lender
A financial institution that invests its own funds or funds it is managing in real estate. Mutual savings banks, life insurance companies, commercial banks, pension and trust funds, and savings and loan associations are examples.

Insurable Title
Title subject to a defect or claim which a title insurance company is willing to insure against. Compare, MARKETABLE TITLE.

Insured Closing Letter
An Indemnity given to a lender from a title insurance company, agreeing to be responsible if the closing agent does not follow the lender's instructions or misappropriates the loan proceeds. Lenders usually require an insured closing letter be on file for each settlement.

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

Interest
The amount of money a lender charges you to borrow money to buy a home. The interest you pay is a percentage of your total loan, and is paid over time.

Interest Rate
The percentage of an amount of money which is paid for its use for a specified time. Usually expressed as an annual percentage.

Interim Financing
A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion.

Internal Rate of Return
A method of determining investment yield over time assuming a set of income, expense, and property value conditions. It combines the present worth of the right to receive future income streams with the present worth of the right to receive a particular profit when the property is sole.

Intestate
An estate without a Will. Compare, TESTATE

Investor
A money source for a lender.

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