FHA Loan and Mortgage Glossary - Terms Beginning with 'I'

  • Impound: Also called homeowners insurance. This is insurance that protects against damage to a property from natural disasters, vandalism, fire, weather damage, and more. The amount and extent of insurance coverage depends on the specific policy.
  • Index: This is an interest rate that is published and helps to determine the current market rate for adjustable rate mortgages.
  • Insurance: This is when a specific amount of money is paid annually or monthly as a premium to protect against damage or loss.
  • Interim Financing: This is the type of loan that finances new construction. This loan is replaced by a normal mortgage loan once the construction is completed.
  • Investment Property: This is a home, condominium, apartment building, duplex, commercial property, or any other type of property that is used for the purpose of accruing equity or income through collecting rent money.
  • Investor: A person, company, or entity that puts money or assets into an investment to yield returns.