Loan Glossary
Plain-English definitions for every term you'll encounter in the loan process
Showing 3 terms
starting with I
I
Impound Account
MortgageAnother term for an escrow account used by mortgage servicers to collect and pay property taxes and homeowners insurance. Required for most loans with less than 20% down.
Interest Rate
GeneralThe percentage charged by a lender for the use of money, expressed as an annual rate. The stated interest rate does not include fees — use APR for a more complete cost comparison.
Inventory Financing
BusinessA revolving line of credit or loan secured by a business's inventory. Allows businesses to purchase inventory without depleting cash. Common in retail and manufacturing.