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Independent Bank |
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A financial bank that is locally owned and operated, and is not associated with any bank holding companies. Also referred to as a community bank. |
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Indexed Rate |
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The total sum of the published index, plus the margin percent.
For example, if the index rate is 7 percent and the margin rate is 2.75 percent, the full indexed rate will be 9.75 percent total. |
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Installment Contract |
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A purchase agreement in which the buyer makes a series of installment payments by a contract period. |
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Interest |
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1. Money paid back for a borrower’s usage of money. The money borrowed is then calculated at a percentage value of the dollar money borrowed and paid over a specified time period.
2. A right to, or share interest of, or title to a property of value. |
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Interest Accrual Rate |
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A percentage a borrower pays for the use of money borrowed. This is usually expressed as an annual percentage rate value. |
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Interest Rate |
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The amount charged per year on a personal loan, or a home mortgage loan. The interest rate will generally vary according to the type of the credit loan in reference. Or, the percentage of interest paid for money in deposit accounts, without regard to compounding the interest rates shown as an annual figure. |
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Interest Rate Cap |
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A preset interest rate cap limit amount on how much a borrower’s percentage rate can actually increase or decrease at interest rate adjustment periods, and over the life of the credit loan as well. |
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Interest Rate Ceiling |
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An interest rate ceiling will generally be specified within the loan agreement. The highest percentage a credit lender can charge før an adjustable rate mortgage loan. |
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Interest-Only Loan Option |
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An interest-only loan has no principal component for a specified period of time determined by the lending agent. The borrower then pays only the interest rate on the loan, which increases their overall cash flow. |
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Internet Bank |
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A bank that exists only on the Internet without any "brick-and-mortar" bank branches. Also known as a virtual bank. Paypal.com is a prime example of an Internet Bank. |
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Interstate Banking |
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Banks that have expanded across state lines through the use of bank holding companies and/or through acquisitions of existing banks through buyouts or mergers. |
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Introductory (or intro) Rate |
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The low rate charged by a lender for an initial period to entice borrowers to accept the for new credit card lender terms. After the introductory period is over, the interest rate charged increases to the indexed rate or the agreed interest rate. Often termed as "a teaser interest rate". |
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Introductory Rate (or Intro APR) |
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A temporary, lower annual percentage rate (APR) that typically lasts from 3-12 months. After the introductory period, the APR generally rises. |
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Investigation |
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Investigation refers to the process a CRA goes through to verify credit report information a borrower disputes on their report. The CRA contacts the credit grantor who supplied the information and asks them to review the information and report back it's rebuttal. |
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Issuing Financial Institution |
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The financial institution that issues a credit card and bills the customer for purchases made against the card account. |
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