Glossary I   A B C D E F G H    J K L M

Implied Contract - A contract created by actions, but not necessarily written or spoken.

Initial Interest Rate - The original, starting interest rate of a loan at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). Sometimes called a teaser rate.

Insurable Title - A property title that a title insurance company agrees to insure against defects and claims.

Insurance - A form of contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy. The periodic payments are known as insurance premiums.

Insurance Binder - A document stating that insurance is only temporarily in effect. Because the coverage will expire by a certain date, a permanent policy must be obtained prior to the expiration date.

Insured Mortgage - A mortgage that is protected by the Federal Housing Administration (FHA) or by private mortgage insurance (PMI). If the borrower defaults on the loan, the insurer must pay the lender the lesser of the loss incurred or the insured amount.

Interest Rate - The cost of borrowing a lender's money. Interest takes into account the risk and cost to the lender for a loan. The interest rate on a fixed rate mortgage depends on the going market rate and how many discount points you pay up-front. An adjustable rate mortgage's interest is a variable rate made up of the index and the lender's margin.

Interest Rate Ceiling - The maximum interest rate for an adjustable-rate mortgage (ARM), as specified in the mortgage loan note.

Interest Rate Floor - The minimum interest rate for an adjustable-rate mortgage (ARM), as specified in the mortgage loan note.

Interest Rate/APR - The Interest Rate/APR shown are valid if your loan is approved today and closes within 60 days. If your loan is not approved today, you will be offered the interest rate available on the day your loan is approved. The interest rate quoted is based on the information you provided and assumptions made by us regarding your credit and finances. The interest rate charged will vary with the index, and is subject to increase. to execute documents on behalf of the grantor of the power.

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