Philippine Real Estate Glossary

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In-File Credit Report
An objective account, normally computer-generated, of credit and legal information obtained from a credit repository.

Income Property
Real estate developed or improved to produce income.

Incompetent
One who is mentally incompetent, incapable, any person who is not insane, but by the reason of old age, disease or weakness of mind, or any other cause, is unable, if unassisted to manage properly and take care of himself or his property or by reason thereof would likely be deceive or imposed upon by artful or designing persons.

Increasing and Diminishing Returns
States that the application of more factors of productions will tend to increase net income up to a certain point beyond which the application of more factors of production will tend to diminish net income.

Index
A number used to compute the interest rate for an adjustable-rate mortgage (ARM). The index is generally a published number or percentage, such as the average interest rate or yield on Treasury bills. A margin is added to the index to determine the interest rate that will be charged on the ARM. This interest rate is subject to any caps that are associated with the mortgage.

Inflation
An increase in the amount of money or credit available in relation to the amount of goods or services available, which causes an increase in the general price level of goods and services. Over time, inflation reduces the purchasing power of a dollar, making it worth less.

Initial Interest Rate
The original interest rate of the mortgage at the time of closing. This rate changes for an adjustable-rate mortgage (ARM). Sometimes known as "start rate" or "teaser."

Injunction
A writ or order issued under the seal of a court to restrain one or more parties to a suite or proceeding from doing an act which deemed to be inequitable or unjust in regard to the rights of some other party or parties in the suit or proceeding.

Installment
The regular periodic payment that a borrower agrees to make to a lender. The regular periodic payment that a borrower agrees to make to a lender. The installment is more often referred to as your monthly mortgage payment. Installments, or monthly payments, can be made either monthly or biweekly, depending on your mortgage type. Your approved lender may also offer additional payment plans tailored to fit your needs.

Installment Loan
Installment LoanBorrowed money that is repaid in equal payments, known as installments. A furniture loan is often paid for as an installment loan.

Installment Note
A note which provides that payments of a certain sum or amount be paid on the dates specified in the instrument.

Instrument
A written legal documents created to affect the rights of the parties.

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

Insurance
A contract that provides compensation for specific losses in exchange for a periodic payment. An individual contract is known as an insurance policy, and the periodic payment is known as an insurance premium.

Insurance Binder
A document that states that insurance is temporarily in effect. Because the coverage will expire by a specified date, a permanent policy must be obtained before the expiration date.

Interest
The fee charged for borrowing money. Simply put, this is the fee that is charged for borrowing money from lenders. The interest rate is the rate of interest that is in effect when the monthly payment is due. An interest rate ceiling -- for an adjustable-rate mortgage (ARM) -- is the maximum interest rate, as specified in the mortgage note; the interest rate floor is the minimum interest rate, as specified in the mortgage note.

Interest Accrual Rate
The percentage rate at which interest accrues on the mortgage. In most cases, it is also the rate used to calculate the monthly payments, although it is not used for an adjustable-rate mortgage (ARM) with payment change limitations.

Interest Rate
The rate of interest in effect for the monthly payment due.

Interest Rate Buydown Plan
An arrangement wherein the property seller (or any other party) deposits money to an account so that it can be released each month to reduce the mortgagor's monthly payments during the early years of a mortgage. During the specified period, the mortgagor's effective interest rate is "bought down" below the actual interest rate.

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

Intestate
A person who dies having made no will, or having made a will is defective in form in which case his estate descends to his heir at law or next of kin.

Investment Property
A property that is not occupied by the owner.

Involuntary Lien
A lien imposed against property without the consent of an owner; example: taxes, special assessments, income tax liens, etc.

Irrevocable
Incapable of being recalled or revoked: unchangeable.

IRA (Individual Retirement Account)
A retirement account that allows individuals to make tax-deferred contributions to a personal retirement fund. Individuals can place IRA funds in bank accounts or in other forms of investment such as stocks, bonds, or mutual funds.