Glossary of Terms
Inactive - An account that has had no deposit or withdrawal activity for some time.
Index - A measurement used by lenders to determine changes to the Interest rate charged on an adjustable rate mortgage (ARM).
Index - Regularly published statistical measure of widely accepted rates that changes periodically.
Individual Accounts - Only the member is permitted to make transactions on the account.
Individual Retirement Account (IRA) - A retirement savings account for individuals. Deposits may be tax-deductible. These contributions cannot exceed specific amounts without penalties.
Inflation - The number of dollars in circulation exceeds the amount of goods and services available for purchase; inflation results in a decrease in the dollar's value.
Inquiry - A request for a copy of your credit report. An inquiry occurs every time you fill out a credit application and/or request more credit. Too many inquiries on a credit report can lower your credit score.
Inspection Certificate - A document verifying that a property is as described. The inspection is usually performed by a designated agent and may be accepted in place of a survey
Inspector - A designated agent who inspects and documents the property as described and verified in an inspection certificate.
Insurance - protection against a specific loss over a period of time that is secured by the payment of a regularly scheduled premium.
Interest Rate - the amount of interest charged on a monthly loan payment; usually expressed as a percentage.
Interest - A fee charged to borrow money. The interest rate is a percentage of the total amount borrowed.
Interest - The amount paid for the use of money. Thus, financial institutions pay savings depositors interest for the use of the funds on deposit, and borrowers pay financial institutions interest for the use of the money advanced to them.
Investor - A company that invests in mortgages that other companies have originated. They purchase the mortgage for a set amount and collect the payments. Ultimately, a borrower's loan may be sold to an investor.