Title Insurance Glossary (terms starting with I)
A limit on the change in the interest rate of an adjustable rate mortgage for an adjustment period. For example, a mortgage that adjusts each year may allow for a maximum adjustment of two percent at the time of each adjustment.
The highest interest rate that an adjustable rate mortgage can adjust to over the life of the loan.
A commitment issued by a lender to a borrower or other mortgage originator guaranteeing a specified interest rate for a specified period of time at a specific cost.
A loan that allows the borrower to make payments based upon the amount of interest that accrues each month, plus any required escrow deposits.