Impounds - A portion of the monthly mortgage payment that is placed in an account and used to pay for hazard insurance, property taxes and private mortgage insurance.

Index - Financial tables used by lenders to calculate interest on adjustable mortgages and on Treasury bills.

Infill development - Any significant new construction in an established area.

Infill housing - Home construction in established areas.

Initial interest rate - The original interest rate on an adjustable mortgage.

Inspection report - An examination of a home's exterior, foundation, framing, plumbing, electrical system, heating, air conditioning, fireplace, kitchen, bathroom, roofing and interior.

Installment contract - A purchase agreement in which the buyer does not receive title to the property until all installments are paid.

Insurable title - Title to property that a company agrees to insure against defects and disputes.

Insurance - Owners and buyers can purchase various types of insurance: hazard, private mortgage and earthquake. The policies guarantee compensation for specific losses.

Interest - The fee borrowers pay to obtain a loan. It is calculated based on a percentage of the total loan.

Interest accrual rate - The rate at which interest accrues on a mortgage.

Interest-only loan - The borrower pays only the interest that accrues on the loan balance each month. Because each payment goes toward interest, the outstanding balance of the loan does not decline with each payment.

Interest rate - The sum, expressed as a percentage, charged for a loan. Interest payments on most home loans are tax deductible.

Interest rate buy-down plans - For cash-short buyers, some sellers are willing to advance funds from the sale of the home to buy down the interest rate and reduce the buyer's monthly obligation.

Interest rate caps - A limit on the amount that can be charged to the monthly payment of an adjustable-rate mortgage during an adjustment period.

Interest rate ceiling - The highest interest a lender can charge for an adjustable-rate mortgage.

Joint tenancy - Ownership by two or more people that gives equal shares of a piece of property. Rights pass to the surviving owner or owners.

Judgment - The decision of a court or law. If a court decides that a person must repay a debt, a lien may be placed against that person's property.

Judicial foreclosure - A procedure to handle foreclosure proceedings as civil matters.

Jumbo mortgage - Loans that exceed limits set by Fannie Mae and Freddie Mac. The current limit is $214,600.

Junior mortgage - A loan that is subordinate to the primary loan.

Late charge - A fee a lender imposes on a borrower when the borrower does not make a payment on time.

Late payment - A payment a lender receives after the due date has passed.

Latent defect - An invisible problem in a piece of property such as bad wiring, termite damage or lead paint.

Lead - A metallic chemical element present in older dwellings, primarily in the form of lead based paint and lead plumbing. Exposure to lead has been found to be a health risk.

Lease - A binding agreement that contains the terms and conditions of a renter's occupancy.

Leasehold estate - An arrangement in which the borrower does not own a specific piece of property but possesses a long-term lease.

Lease option - A lease that contains the right to purchase the property for a specific price within a certain time frame.

Legal description - A specific way of identifying and locating a piece of real estate that is acceptable to a court.

Lender - A bank, savings institution or mortgage company that offers home loans.

Letter of intent - A formal statement that a buyer intends to purchase the property for a certain price on a certain date.

Liability insurance - A policy that protects owners against any claims of negligence, personal injury or property damage.

Lien - A claim laid by one person or company on the property of another as security for money owed.

Life cap - A limit on the amount that a loan rate can move during the term of the mortgage.

Listing - A piece of property placed on the market by listing agent.

Listing inventories - The known number of houses for sale within a given market.

Loan application - The first step toward submitting a home loan requires the borrower to itemize basic financial information.

Loan application fee - A fee charged by lenders processing a loan application.

Loan commitment - A promise by a lender or other financial institution to make or insure a loan for a specified amount and on specific terms.

Loan officer - An official representative of a lending institution who is empowered to act on behalf of the lender within certain limits.

Loan origination fee - Most lenders charge borrowers an origination fee (or points) for processing a loan. A point is 1 percent of the total loan amount.

Loan processing fee - A fee charged by some lenders for gathering information to enable the lender to process the loan.

Loan term - The amount of time set by the lender for a buyer to pay a mortgage. Most conventional loans have 30-year or 15-year terms.

Loan-to-value ratio - A technical measure used by lenders to assess the relationship of the loan amount to the value of the property.

Lock-in - When interest rates are volatile, many borrowers want to "lock-in" an interest rate and many lenders will oblige, setting a limit on the amount of time the lock-in is in effect.

Low-documentation loan - A mortgage that requires only minimal verification of income and assets.

Low-down payment loan - A home loan that requires the borrower to make only a small down payment before obtaining the financing needed to purchase a house.