A provision in a contract protecting the homeowner from harm, loss or damage caused by actions or omissions of the general (and all sub) contractor.
Index
A published interest rate to which the interest rate on an Adjustable Rate Mortgage (ARM) is tied. Some commonly used indices include the 1 Year Treasury Bill, 6 Month LIBOR, and the 11th District Cost of Funds (COFI).
Inflation
Happens when the dollars in circulation exceed the amount of goods and services available for purchase, resulting in a decrease in dollar value.
Inquiry
A request for a credit repord, including applications for credit.
Interest
Interest rate
The percentage of a loan balance which you will pay each year. For example, an 8% (eight percent) (.08) means that you will pay $8,000 interest on a mortgage loan that had an average balance of $100,000 for the year ($100,000.00 x .08)
Intermediate term mortgage
A mortgage loan with maturity of 20 years or less
Insurance
Protection against certain types of loss, such as theft, fire, flood, etc. that is paid in premiums over a period of time
