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Impact fees
Fees collected from developers of new homes to pay for schools, parks and other facilities.
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Implied warranty of habitability
Court cases which determined that all new homes are assumed to be fit for human habitation and meet all building codes.
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Impounds
A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.
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Income property
Property that is not occupied by the owner but is used to generate income.
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Incurable defect
A defect in a property that cannot be fixed, such as an adjacent hazardous waste site, or that would cost too much to repair relative to the value of the property.
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Index
Financial tables used by lenders to calculate interest rates on adjustable mortgages and on Treasury bills.
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Individual Retirement Account
Tax-deferred savings accounts that allow people to accrue retirement funds.
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In-file credit report
Computer-generated reports drawn from credit repositories that are generally regarded as objective histories.
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Infill development
Any significant new construction in an established area.
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Infill housing
Home construction in established areas.
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Inflation
This event occurs when there is more money available than there are goods and services to be purchased. Mortgage rates, which are determined by the marketplace and the actions of the Federal Reserve Board and Wall Street, are sensitive to inflation fears.
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Infrastructure
The roads, schools, parks, utilities, bridges and communications systems in a community.
Initial interest rate
The original interest rate on an adjustable mortgage.
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Inspection report
An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.
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Installment contract
A purchase agreement in which the buyer does not receive title to the property until all installments are paid.
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Insulation
Materials including cellulose, glass fiber, rock wool, polystyrene, urethane foam and vermiculite that slow heat loss.
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Insurable title
Title to property that a company agrees to insure against defects and disputes.
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Insurance
Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.
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Insurance binder
A temporary insurance arrangement usually put in force until a permanent policy can be obtained.
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Interest
The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.
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Interest accrual rate
The rate at which interest accrues on a mortgage.
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Interest rate
The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax- deductible.
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Interest rate buy-down plans
For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.
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Interest rate caps
A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.
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Interest rate ceiling
The highest interest a lender can charge for an adjustable-rate mortgage.
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Interest-only loan
The pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.
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Investment property
Real estate that generates income, such as an apartment building or a rental house.
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Jalousie window
A window that consists of vertical rows of horizontal glass slats that operate together by a crank mechanism that connects all the slats.
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Joint liability
The responsibility of two or more people to fulfill the terms of a home loan or debt.
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Joint tenancy
Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.
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Joist
A floor or ceiling support member supported by foundation walls, piers or beams. Subflooring is connected to floor joists.
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Judgment
The decision of a court or law. If a court decides that a person must repay a debt, a lien may be placed against that person's property.
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Judicial foreclosure
A procedure to handle foreclosure proceedings as civil matters.
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Jumbo mortgage
Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit is $300,700.
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Junior mortgage
A loan that subordinate to the primary loan.
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Kit home
A structure that contains prefabricated components and is put together by a contractor.
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Knee wall
A wall-like structure that supports roof rafters.
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Knob-and-tube wiring
An old-fashioned wiring system that has been replaced by fuses and circuit breakers.
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Landscape
A home's surroundings can range from a shrub-studded emerald lawn to a native-plant xeriscape. It is a major component of curb appeal.
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Landscape architect
A professional who holds a degree in landscape architecture, which involves training in horticulture, landscape design and planning.
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Landscape contractor
A professional who carries out the plans of a landscape architect or a landscape designer.
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Landscape designer
A landscape designer has training in horticulture and landscape planning, but does not necessarily hold a degree.
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Late charge
A fee a lender imposes on a borrower when the borrower does not make a payment on time.
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Late payment
A payment a lender receives after the due date has passed.
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Latent defect
An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.
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Lead
A metallic chemical element present in older dwellings, primarily in the form of lead-based paint and lead plumbing. Exposure to lead has been found to be a health risk.
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Lease
A binding agreement that contains the terms and conditions of a renter's occupancy.
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Lease option
A lease that contains the right to purchase the property for a specific price within a certain time frame.
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Leasehold estate
An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.
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Legal blemish
Blemishes on a piece of property, such as a zoning violation or fraudulent title claim.
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Legal description
A specific way of identifying and locating a piece of real estate that is acceptable to a court.
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Lender
A bank, savings institution or mortgage company that offers home loans.
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Letter of intent
A formal statement that the buyer intends to purchase the property for a certain price on a certain date.
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Leverage
The use of a small amount of cash--a 5 percent or 10 percent down payment--to buy a piece of property.
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Liabilities
A borrower's debts and financial obligations.
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Liability insurance
A policy that protects owners against any claims of negligence, personal injury or property damage.
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Lien
A claim laid by one person or company on the property of another as security for money owed.
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Life cap
A limit on the amount that a loan rate can move during the term of the mortgage. For example, the rate on an adjustable-rate mortgage that begins at 5 percent and has a lifetime cap of 6 percentage points cannot rise above 11 percent, even if rates on fixed-rate mortgages soar to 20 percent.
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Life-cycle cost analysis
An analysis of a building project's expected operating, maintenance and replacement costs, calculated by an architect.
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Limited partnership
Real estate syndicates and other investment groups use this type of ownership.. A general partner makes the group's investment decisions, oversees the investment and is principally liable for any losses.
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Lintel
A horizontal piece over a door or window that carries the weight of the structure above it.
Liquid assets
Cash and all other assets that can be converted to cash relatively quickly. Liquid assets can include money in savings and checking accounts, money-market accounts, and most certificates of deposit.
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Liquidated damages
When a real estate deal goes awry, one party often is entitled to liquidated damages, a sum of money set out in the purchase contract in that event.
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Listing
A piece of property placed on the market by a listing agent.
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Listing inventories
The known number of houses for sale within a given market.
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Live-in partnership
An arrangement in which two unrelated people purchase a home.
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Live-work space
An officially designated dwelling in which the occupant conducts a home-based business or enterprise.
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Load-bearing wall
A wall that supports not only its own weight, but the weight of other parts of a home. Also called a bearing wall.
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Loan application
The first step toward submitting a home loan requires the borrower to itemize basic financial information.
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Loan application fee
A fee charged by lenders to for making a loan application.
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Loan commitment
A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.
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Loan officer
An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.
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Loan origination fee
Most lenders charge borrowers an origination fee--or points--for processing a loan. A point is 1 percent of the total loan amount.
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Loan processing fee
A fee charged by some lenders for gathering information to enable the lender to process the loan.
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Loan term
The amount of a time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.
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Loan -to-value ratio
A technical measure used by lenders to assess the relationship of the loan amount to the value of the property
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Lock-in
When interest rates are volatile, many borrowers want to
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Loft
A living space not partitioned into rooms or a small space built above a larger room.
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Log cabin
Homes constructed of rough-hewn timbers and a standard housing form in the early European settlement of the U.S.
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Low density
A low concentration of housing units in a specific area.
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Low-ball offer
An offer made to a seller that is substantially below market value. The longer a property stays on the market, the more likely there are to be such offers.
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Low-documentation loan
A mortgage that requires only minimal verification of income and assets.
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Low-down-payment loan
A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.
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