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Impound Account (Reserves): A portion the lender/servicer holds aside from the borrower's monthly payments to pay for taxes, mortgage insurance, lease payments, hazard insurance, etc…

Improvements: Anything that is built or added upon a raw piece of land that add value. (i.e. buildings, streets, sewers, etc…)

Income Approach: One of the three methods used to appraise a building based off of the income that it generates.

Income Property: Real estate that is purchased for the purpose of generating rental income such as apartment buildings, retail centers, hotels, office buildings, etc…

Index: A published interest rate that lenders use to adjust the interest rate on an adjustable mortgage. Some of the most popular indexes used include: PRIME, LIBOR, 12 MTA, and 11th Dist.

Interest: Money that is charged by the lender for the use of money over a specified period of time.

Interest Rate: A percentage of the principal balance paid to the lender for the use of the money.

Investor: A source of capital for a lender.

Interim Financing: A short-term loan, usually no longer than 18 months that must be replaced with a permanent loan. Usually used for construction financing, short periods when borrower must fill the property before getting permanent financing, etc…