Negative Amortization
A situation in which a borrower is paying less
interest than what is actually being charged for a
mortgage loan. The unpaid interest is added to the
loan's principal. The borrower may end up owing
more than the original amount of the mortgage.
Net Rental Income
The remaining income generated by an investment
property after deducting all mortgage related
expenses, including HOA fees (if applicable) and
operating expenses from the gross rental income.
Net Worth
The amount by which an individual's assets (or
assets of a business) exceed total liabilities.
Non-assumption Clause
In a mortgage contract, a statement that disallows
a new buyer to assume a mortgage payment without
the approval of the lender.
Non-conforming Loan
A loan that does not conform to Federal National
Mortgage Association (FNMA) or Federal Home Loan
Mortgage Corporation (FHLMC) guidelines either
because the loan amount is too high or FNMA/FHLMC
underwriting or other criteria are not met. Jumbo
loans are non-conforming.
Non-permanent Resident Alien
A non-U.S. citizen who resides in the United
States on a temporary basis on a
government-issued work visa.
Non-resident Alien
A non-U.S. citizen who resides outside of the
United States.
Note
Legal document obligating a borrower to repay a
loan at a stated interest rate during a specified
period of time. The agreement is secured by a
mortgage or deed of trust or other security
instrument.
Notice of Default
Written notice to a borrower that default has
occurred and that legal action may be taken.
