Impound
The part of a borrower's monthly payments which is held by the lender or servicer to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. This is also known as "reserves".

Index
A published interest rate which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments which is used to adjust interest rates on an adjustable mortgage. The interest rates can be adjusted up or down.

Interim Financing
A construction loan made during completion of a building or a project. A permanent loan usually replaces this loan after completion of the construction.

Investor
A money source for a lender.

Jumbo Loan
A jumbo loan is a loan which is above the maximum loan amount established by Fannie Mae and Freddie Mac. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

Lien
A lien is a claim on a piece of property which gives the lienholder (lender) the right to reclaim the property if payment obligations or terms are not met sufficiently.

Loan-to-Value Ratio
T he amount of a mortgage loan and the appraised value of the property expressed as a percentage.