SLANG AND REAL ESTATE TERMINOLOGY FOR INVESTMENT

Making money with real estate terminology might not be glamorous and appealing but you need to know real estate terminology to be able to structure the deal.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z


I

Income Property:This is property that is used to generate an income.

Index: This number is used when the interest rate for an ARM is required to be calculated. This value is generally held as a percentage, to which a margin is merged to which then gives an interest rate which can be used with the ARM.

Individual Retirement Account (IRA): This is a retirement savings plan, tax is not applicable here.

Inflation: This is when prices increase.

Initial Interest Rate: This is the rate of an ARM which was held when the loan was created.

Inquiry: This is where a copy of a credit report is requested, this generally happens during a credit request.

Installment: This is an agreed value that is regularly paid to the lender by the borrower.

Installment Debt: This is a loan where payments are scheduled for repayment, this is under a term which is stated in the mortgage.

Interest: This is the fee that is paid when you wish to borrow money, this money is paid directly to the lender which the money came from.

Interest Accrual Rate:This is the build up of interest from a mortgage as a percentage value.

Interest Rate Cap: This is the limitation that exists on the changing of the interest rate for an ARM, this is stated in the note belonging to the mortgage.

Interest Rate Ceiling: This is the maximum interest rate of an ARM, this is stated in the note belonging to the mortgage.

Interest Rate Floor: This is the minimum interest rate of an ARM, this is stated in the note belonging to the mortgage.

Investment Property: This is a property that is used to gain income instead of serving as a place to live.


Real Estate Terminology I to Analyze Your Deal