Word | Definition |
Negative amortization | The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate loans are not subject to negative amortization, but many adjustable-rate mortgages are susceptible.
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Negative-slope driveway | A driveway that drops from street level to the garage.
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Neo-traditional planning | Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service
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Net cash flow | Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.
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Net worth | The worth of a person or company based on the difference between total assets and liabilities.
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New Urbanism | A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.
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NIMBY (Not In My Back Yard) | The response sometimes given by neighborhoods and communities to proposed changes or development.
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No cash-out refinance | The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.
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No-competition lots | A lot in which the buyer's home will be constructed by a particular builder.
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No-documentation loan | A loan application that does not require verification of income but typically is granted in cases of large down payments.
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Non-assumption clause | A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
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Non-liquid asset | An asset such as a house that is not easily turned into cash.
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Non-recurring closing costs | Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home
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Notarize | To prove execution of a document by means of a certificate of acknowledgment by a Notary Public.
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Note | Written evidence of a debt by a borrower that includes a promise of payment in accordance with specified terms. A valuable document which must not be lost even when paid in full. In real property trans-
actions, a note is usually secured by a deed of trust.
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Note rate | The interest rate specified in a mortgage note.
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Notice of Completion | A notice which should be recorded it indicate the completion of improvements made to real property. A valid notice of completion limits the time for filling mechanic's liens.
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Notice of Default | Recorded notice of a borrows failure to perform the obligations in a deed of trust and/or note.
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