impound (or reserves)
Portion of a borrower's monthly payments held by the lender to pay for taxes, insurance, and other items as they become due.

impound account
Savings account for accumulating that portion of a borrower's monthly payments designated for future payments of taxes and insurance. (Required by certain lenders or with certain types of financing.)

index
A published rate used by lenders to calculate interest adjustments on adjustable rate loans (Index+Margin=Interest Rate). Some indices are more volatile than others. Some common indices are 1 year Treasury bills, COFI (Cost of Funds Index ) and six-month LIBOR (London Interbank Offered Rate).

initial rate
The rate charged during the first interval of an adjustable rate loan.

insolvency
Condition of a person who is unable to pay his or her debts as they fall due.

interest
Charge paid for borrowing money, calculated as a percentage of the amount borrowed.

interest Rate
The periodic charge, expressed as a percentage, for use of credit.

interest rate cap
A safeguard built into adjustable rate loans to prevent drastic changes in interest rates.

invoice price
The price the dealer pays to buy a vehicle from the manufacturer, exclusive of holdbacks or other discounts.