Impound Account
Also known as an 'Escrow Account.' An account held by the lender/servicer, into which a borrower makes monthly installment payments for property taxes, insurance and special assessments. The lender servicer disburses these sums as they become due.

Income Property
Real estate developed or improved to produce income. Also referred to as 'non-owner occupied property' or 'rental property.'

Independent Contractor
A person who is employed by a company on a contract basis, for a fixed fee or at an hourly rate, without being a permanent employee of that company and without being eligible for company benefits. Independent contractors are usually responsible for paying their own federal, state, local, and FICA taxes.

Index
An economic indicator which lenders use to calculate interest rates on mortgages (ARMS).

Initial Fixed Interest Period
The period of time that the interest rate on an adjustable loan is initially fixed. Thereafter, interest rate then becomes fully indexed (the then current index value plus factor/margin). May change in accordance with the index of the loan document

Initial Interest Rate
The introductory interest rate on an adjustable-rate mortgage (ARM), which usually changes at the first rate adjustment.

Installment
The regular periodic payment that a borrower agrees to make the lender.

Interest
Money paid for the use of money borrowed funds, usually expressed as an annual percentage.

Interest Rate Cap
A limit to the interest rate increases and decreases on an adjustable rate loan; either from one adjustment period to the next or over the life of the loan.

Investment Property
Property the applicant does not intend to occupy, whether or not the property produces income.