Inspection Fee - A thorough inspection by a professional that evaluates the structural and mechanical condition of a property. This makes the potential buyer aware of any potential hazards or home repairs that may be needed. A typical inspection costs around $225 - $450.

Interest - The fee a lender charges for permitting the borrower to use their money for a specific length of time.

Interest Adjustment - The amount of interest due between the date your mortgage starts and the date the first mortgage payment is calculated from. Sometimes there is a gap between the closing date of your home purchase and the first payment date of your mortgage. Let's say that the closing date on your new house is August 10th - but your mortgage payments are on the 15th of each month (so your first payment is calculated from August 15th and paid on September 15th). That leaves four days (August 10th to 14th) that aren't accounted for in your first mortgage payment. You have to make an extra payment to make up for these four days; the payment is generally due on your closing date. You can avoid all this by arranging to make your first mortgage payment exactly one payment period (e.g., one month) after your closing date.

Interest Only Mortgage - An interest only mortgage is one that gives you the option of paying just the interest or the interest and as much principal as you want in any given month during an initial period of time. Interest only loans can be 30-year fixed-rate mortgages or adjustable rate mortgages.

Interest Rate - The rate of interest a lender receives for permitting the borrower to use money for a specific length of time. The rate is calculated by dividing the total amount of interest charged by the loan amount.

Interest Rate Cap - Consumer safeguards that limit the amount the interest rate on an ARM loan can change in an adjustment interval and/or over the life of the loan. For example, if your per-period cap is 1% and your current rate is 7%, then your newly adjusted rate must fall between 6% and 8% regardless of actual changes in the index. The interest rate ceiling is the highest interest rate that you can receive under an Adjustable Rate Mortgage. The interest rate floor is the lowest interest rate that you can receive under the ARM. Floors are less likely than ceilings.