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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.

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