Income Stock
Common stock that pays dividends at a higher-than-average rate, resulting in a higher yield for stockholders. Income stock frequently in preferred by investors who seek current income in addition to growth.
Index
An interest rate indicator used to determine changes in the mortgage interest rate. Any index that is beyond the control of the lender and easily verifiable by the borrower can be used. The maturity of the index chosen usually corresponds to the loan's adjustment interval. Some commonly used indexes include: 6-Month Treasury Bill rates; 13, 3-, and 5-Year Treasuries.
Index Fund
A fund managed with the objective of duplicating the performance of securities in a broad-based index by investing in all or most of the securities included in that index.
Individual Retirement Account (IRA)
A method of planning for retirement that enables individuals to save up to $2,000 annually. These funds, called contributions, are in addition to any retirement plan already in place by the individual's employer. In addition, if an individual's employer has adopted a Savings Incentive Match Plan for Employees, the employee will be able to make a pre-tax elective contribution to an IRA of up to $6,000 annually. IRA funds are tax-deferred, that is, not subject to tax until withdrawals are made, when the individual may be in a lower tax bracket. (See Tax-Deferred Investment).
Individual Retirement Account "Rollover"
A special IRA that is established specifically for taxable funds distributing from a tax-qualified retirement plan. As in the case of a regular IRA, funds are not subject to tax until they are withdrawn from the account.
Inspection
An examination of property for various reasons, such as a termite inspection, inspection to see if required repairs were made before funds are released, etc.
Inspector
The property/mechanical inspector examines a home to evaluate its plumbing, electrical work, appliances, heating and cooling systems, roof and structural stability.
Interest
- Earnings paid by any fixed-income security (a bond, a certificate of deposit, or an annuity, for example.)
- Money paid for the use of money—that is, paid for a loan.
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.
Interest Rate Cap
The maximum interest rate increase of an Adjustable Rate Mortgage. For example: a 12% loan with a 5% interest rate cap would have maximum interest for the life of the loan which would not exceed 17%.
Intestate
Dying without a will.
Investment Management Account
An account whereby a financial institution is given discretionary power with regard to investment decisions on behalf of the investor. Fees for this service vary, but usually are based on a percentage of the overall value of the funds under management.
Investor
The holder of a mortgage or the permanent lender for whom the mortgage banker services the loan. Any person or institution that invests in mortgages.
Irrevocable Trust
A type of trust that cannot be revoked or changed in any way.
Invasion of a Trust
Refers to a distribution of assets made from the principal of a trust
