A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
A B C D E F G H I J K L M N O P Q R S T U V W X Y Z |
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Terms: N |
| Negative Amortization |
| An increase in the outstanding balance of a mortgage that occurs when the monthly payment is not large enough to cover the interest due. The amount of the shortfall is added to the remaining balance to create negative amortization. |
| Net Cash Flow |
| The income that remains for an investment property after the monthly operating income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance for the mortgage, homeowners' association dues, leasehold payments, and subordinate financing payments. |
| Net Effective Income |
| The borrower's gross income minus federal income tax. |
| Net Worth |
| The value of all of a person's assets, including cash, minus all liabilities. |
| No Closing Cost Loan |
| A loan in which the fees the borrower(s) are not required to pay cash out-of-pocket at closing for the normal closing costs. The lender typically includes the closing costs in the principal balance or charges a higher interest rate than for a loan with closing costs to cover the advance of closing costs. |
| Non-Assumption Clause |
| A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. |
| Non-Conforming Loan |
| A loan that exceeds Fannie Mae's legislated mortgage amount limits of $300,700. Also called a jumbo loan. |
| Non-Liquid Asset |
| An asset that cannot easily be converted into cash. |
| No Out-of-Pocket Cost Loan |
| A loan in which the fees the borrower(s) are not required to pay cash out-of-pocket at closing for the normal closing costs. The lender typically includes the closing costs in the principal balance or charges a higher interest rate than for a loan with closing costs to cover the advance of closing costs. |
| Note |
| A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time. |
| Note Rate |
| The interest rate stated on a mortgage note. |
| Notice of Default |
| A formal written notice to a borrower that a default has occurred and that legal action may be taken. |