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
N
- Negative
amortization
Occurs when your monthly payments are not large enough to pay all the interest due on the
loan. This unpaid interest is added to the unpaid balance of the loan. The danger of
negative amortization is that the home buyer ends up owing more than the original amount
of the loan.
- Net
effective income
The borrower's gross income minus federal income tax.
- No
cash-out refinancing
A Mortgage Refinancing transaction in which the new mortgage amount is limited to the sum of
the remaining balance of the existing first mortgage, closing costs (including prepaid
items), points, the amount required to satisfy any mortgage liens that are more than one
year old (if the borrower chooses to satisfy them), and other funds for the borrower's use
(as long as the amount does not exceed 1 percent of the principal amount of the new
mortgage).
- Non
assumption clause
A statement in a mortgage contract forbidding the assumption of the mortgage without the
prior approval of the lender. Note: The signed obligation to pay a debt, as a mortgage
note.
- Non-performing
asset
An asset such as a mortgage that is not currently accruing interest or on which interest
is not being paid.
- Note
A legal document that obligates a borrower to repay a mortgage loan at a stated interest
rate during a specified period of time.
- Notional principal amount
The hypothetical amount on which interest rate swap payments are based. The notional
principal amount in an interest rate swap generally is not paid or received by either
party.
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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