Commercial Glossary: I

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Impound: Impound is a portion of a monthly payment that is held and used to pay taxes and insurance.

Improvements: Improvements to a home, building or property that bring increase and value and appeal.

Income Statement: This is a profit & loss statement that takes a companies revenue and subtracts the costs.

Income Stream: A debt that one owes to another.

Index: Index’s are used as indicators and influence interest rates in adjustable rate mortgages and loans.

Industrial: Class of commercial property that is used for industrial purposes and operations.

Industrial For Lease: This means industrial space that is available for lease.

Institutional Lenders: Banks, savings and loan associations, mortgage companies, finance companies and investors.

Insurance-based Income Streams: Cash and income streams coming from insurance companies that are paying an individual or business.

Intangible Personal Property: Intangible assets that have value, such as patents, copyrights and trade secrets.

Interest: The cost of borrowing money. Typically it is a percentage of the amount borrowed.

Interest Rate: The percentage of a debt that is the cost to borrow money.

Interest Rate Cap: The ceiling or maximum limit that an interest rate can go.

Investment Banker: One who issues securities, buys or sells securities. Many are also consultants and advisors and facilitate mergers, acquisitions and restructuring to other banks and organizations.

Investment-to-value Ratio: A ratio to measure the likeliness a creditor will recover its investment if a foreclosure were to occur.

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