I

Impound Account

Also known as an Escrow Account it is an account held by the lender to which the borrower pays monthly installments, collected as part of the monthly mortgage payment, for annual expenses such as taxes and insurance. The lender disburses impound account funds on behalf of the borrower when they become due.

Index

Most lenders generally tie adjustable rate mortgage loan ( ARM) interest rate changes to an "index." An index is a widely published rate such as LIBOR, T-Bill, or 11th District Cost of Funds ( COFI). Lenders use these indices to establish the interest rates charged on mortgage loans. For ARMs, a predetermined margin is added to the index to compute the interest rate adjustment.

Initial Cap

Consumer safeguard that limits the amount the interest rate on an adjustable rate mortgage can change during the first adjustment period. See Caps.

Initial Rate

The rate charged during the first interval of an ARM loan.

Insurance

The type of insurance(s) required for your loan. Private mortgage insurance may also be required in addition to what is indicated.

Interest

Charge paid for borrowing money.

Interest Rate

The annual rate of interest on the loan, expressed as a percentage of 100.

Interest Rate Cap

Consumer safeguards that limit the amount the interest rate on an ARM loan can change in an adjustment interval and/or over the life of the loan. For example, if your per-period cap is 1% and your current rate is 7%, then your newly adjusted rate must fall between 6% and 8% regardless of actual changes in the index.

Interest Rate Disclosure

A description of the conditions applicable to the processing of your loan as well as the terms of your interest rate agreement with Quicken Loans .

J   (Index)

Joint Liability

Liability shared among two or more people, each of whom is liable for the full debt.

Joint Tenancy

A form of ownership of property giving each person equal interest in the property, including rights of survivorship.

Jumbo Loan

A mortgage larger than the $300,700 limit set by Fannie Mae and Freddie Mac.

Junior Mortgage

A mortgage subordinate to the claim of a prior lien or mortgage. In the case of a foreclosure, a senior mortgage or lien will be paid first.