Mortgage and Real Estate Terms Sorted Alphabetically:
N - negative amortized (Neg/AM), Neg AM Loans, negative
cash flow, net worth…more
NEGATIVE AMORTIZED (NEG/AM) - the unpaid interest
which is added to the mortgage principal in a loan
where the principal balance increases rather than
decreases, because the monthly mortgage payments do
not cover the full amount of the interest that's due.
Option
ARM mortgages have become a very popular mortgage
product in recent years which can lead to Neg Am.
NEG AM LOANS - a popular type of an Adjustable
Rate Mortgages (ARM) loan, where the initial interest
rate (start-rate) is very low, therefore monthly payments
are smaller than other type loans. These type loans
have interest rates which adjust periodically, and
monthly payments which also change. There normally
is a CAP, or ceiling, which limits the amount the
interest rate can go up (fully indexed), AND also
a separate limit on the size the monthly payments
can increase as well. Could be a decent fit for people
with strong income 'potential', bigger home now for
less money monthly. These loans do carry a higher
level of risk. Be sure to speak with an ForTheBestRate.com Loan
Advisor for details.
NEGATIVE CASH FLOW - the deficit that is created
when expenditures required to maintain an investment
exceed income received on the property.
NET WORTH - the value of all assets including cash
less total liabilities. Often used as an underwriting
guideline to indicate creditworthiness and financial
strength.
NO CASH-OUT REFINANCE (RATE & TERM RE-FI) - transaction
in which the mortgage amount is limited to the sum
of the unpaid principal balance of any existing mortgages
plus closing costs. Check out our Mortgage
Refinance Section for program options.
NON-CONFORMING MORTGAGE LOAN - a residential mortgage
loan in which the loan amount, the loan-to-value ratio,
the term, the credit score, or some other aspect (or
combination of characteristics) of the loan exceeds
permissible limits as specified in (GSE) agency regulations.
Rates & fees are typically higher than 'conforming'
rates. These programs may include bad
credit mortgage financing options and stated income
mortgage and no doc loan programs for self-employed
or commissioned individuals.
NOTE - a general term for any kind of paper or document
signed by a borrower that is an acknowledgment of
the debt and is, by inference, a promise to pay. When
the note is secured by a mortgage, it is called a
mortgage note, and the mortgagee is named as the payee.
NOTICE OF COMPLETION - notice recorded after completion
of construction. Mechanic's liens must be filed within
a specific period of time thereafter.
NOTICE OF DEFAULT - notice recorded after a default
under a deed of trust or mortgage has occurred. Also,
the notification sent to defaulting borrowers required
by insurers or guarantors - such as FHA, VA, or certain
mortgage insurance companies.
Mortgage Glossary - Mortgage and Real Estate Terms Sorted Alphabetically:
Mortgage
Glossary
A
- adjustable rate mortgage, adjustment interval, amortization,
annual percentage rate (APR) - more
B
- balloon mortgage, bankruptcy, basis point, beneficiary
- more
C
- caps, cash flow, cash out (second mortgage), cash
out refinance - more
D
- debt consolidation, debt service, debt reduction
plan, debt-to-income ratio - more
E
- earned and unearned income, earnest money, easement,
economic life - more
F
- Fair Credit Reporting Act, fair market value, Fannie
Mae - more
G
- good faith estimate, grace period, gradual payment
mortgage (GPM), grantee - more
H
- home equity, home improvement loan, Home Mortgage
Disclosure Act (HMDA) - more
I
- index, in file credit report, inflation, initial
interest rate, ingress and egress - more
L
- lender buy-down mortgage, liability insurance, LIBOR,
loan application - more
M
- manufactured home, market value, maximum loan amount,
mechanic's liens - more
N
- negative amortized (Neg/AM), Neg AM Loans, negative
cash flow, net worth - more
O
- obsolescence, off-site improvements, on-site improvements,
ordinary income - more
P
- par, partial payment, partnership, party wall, payment
shock - more
Q
- quality control, quit claim deed, quote - more
R
- rate shopper, real property, real estate loans,
reconciliation - more
S
- sales contract, satisfaction or mortgage, seasoned
mortgage, second mortgage - more
T
- tax lien, tenancy in common, tenant, term, title,
title insurance - more
U
- underwriting, unencumbered property, uniform commercial
code (UCC)ï -more
V
- VA (Department of Veterans Affairs) Mortgage, vacancy
rate, VA funding fee - more
