GLOSSARY OF MORTGAGE TERMS

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INCOME VERIFICATION:
CONFIRMATION IN WRITING OF THE INCOME THAT IS STATED ON THE APPLICATION. THE LENDER CONFIRMS THAT ALL THE DETAILS OF THE LETTER IS TRUE AND ACCURATE.

INSPECTION:
THE EXAMINATION OF THE HOUSE BY A BUILDING INSPECTOR SELECTED BY THE PURCHASER.

INTERM FINANCING:
SHORT-TERM FINANCING TO HELP A BUYER BRIDGE THE GAP BETWEEN THE CLOSING DATE ON THE PURCHASE OF A NEW HOME AND THE CLOSING DATE ON THE SALE OF THE CURRENT HOME.

INTEREST:
INTEREST IS THE PRICE PAID BY A BORROWER TO A LENDER FOR THE USE OF THE LENDER’S MONEY.

INT ADJ DATE:
THE DATE FROM WHICH INTEREST ON THE MORTGAGE LOAN ADVANCED IS CALCULATED FOR REGULAR PAYMENTS. INTEREST DUE FROM THE DATE OF THE MORTGAGE LOAN IS ADVANCED TO THE IAD, AND IS DUE ON CLOSING, AND IS TYPICALLY DEDUCTED FROM THE ADVANCE OF MONEY.

INTEREST ONLY LOAN:
THE INTEREST IS PAID ON A MORTAGE WITH NO REDUCTION TO THE PRINCIPAL DURING THE SET TERM.

INTEREST RATE:
EXPRESSED AS A PERCENTAGE, IT IS THE AMOUNT CHARGED TO BORROW MONEY.