Real Estate Glossary
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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 variable-rate mortgages are susceptible.
Negative-slope driveway - A driveway that drops from street level to the garage.
Net worth - The worth of a person or company based on the difference between total assets and liabilities.
Niche - A small recessed area in a wall, traditionally arched at the top.
No-documentation loan - A loan application that does not require verification of income but typically is granted in cases of large down payments.
Non-assumption clause - A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
Non-liquid asset - An asset such as a house that is not easily turned into cash.
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 inspection.
Note - The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.
Note rate - The interest rate specified in a mortgage note.
Notice of default - A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.
