What Does IPAC Stand For?


What Does the Acronym IPAC Stand For?

When attempting to get a mortgage or any type of loan, you might hear that the lender is going to analyze your personal IPAC. Just what is an IPAC? To anyone who is unused to hearing the term it may seem alien or absurd. Fortunately, IPAC is not any secret and we can share what IPAC means to you and to your possibility of getting a better mortgage rate:

  • Income: The amount you are able to get as a loan, no matter what it is going to be used for, is dependent on the amount you make every month and the resources you will be able to use towards the repayment of the loan. This means the higher the income, the more you will be able to pay back monthly.
  • Property: Property effects more of the type of property you are pursuing, which can even include whether this is your primary home, secondary home, or an investment property. Normally payments will be higher on secondary and investment homes first as they will more likely fall to the wayside in thew event of financial hardship. The availability of the property to hold either a single family or more will change the rate as well.
  • Assets: Just the same as income assets, normally liquid assets, are seen as potential to meet your payments in case of financial hardship. These assets are usually examined as to the value of each stock, bond, and mutual fund individually as to their capability to make money.
  • Credit: All lenders, regardless of the purpose of the loan, are going to be analyzing your credit history as well as your credit history. In most cases the higher your credit score the lower rate you can be approved for. This is because established credit history is used to predict what trends you have when spending money. This also includes your debt to income ratio in the interest of ascertaining whether or not you can make payments in a timely and responsible manner.

As you can see IPAC is merely an acronym for the features that contribute to your ability to get a mortgage rate, as well as the amount of interest you will have to pay back.