| NATIONAL NOTARY ASSOCIATION |
An association that sends out
necessary application materials and supplies to initiate one’s notary
commission.
|
| NEGATIVE AMORTIZATION |
Amortization means that monthly
payments are large enough to pay the interest and reduce the principal
on a mortgage loan by its maturity date. Negative amortization occurs
when the monthly payments do not cover all of the interest cost. The
interest cost that isn’t covered is added to the unpaid principal
balance. This means even after making many payments, a borrower may owe
more than was owed at the beginning of the loan.
|
| Negative Cash Flow |
Situation in which expenditures
required to maintained an investment exceed income received on the
property.
|
| Net Cash Flow
|
Income that remains for an
investment property after the monthly operating income is reduced by the
monthly housing expense (which includes PITI for the mortgage, owners'
association dues, leasehold payments, and subordinate financing
payments).
|
| NET DISPOSABLE INCOME |
Money left after subtracting
the principal, interest, taxes and insurance and all other obligations
from the monthly net income. The surplus amount the borrower has
available for living expenses after housing expenses are subtracted.
|
| NET INCOME |
The difference between adjusted
gross income and operating expenses. May or may not include
depreciation.
|
| NET RENTAL INCOME |
The monthly gross rental income
minus the monthly mortgage payments, insurance, maintenance, taxes and
other miscellaneous payments.
|
| Net Worth |
Value of all of a company's (or
individual's) assets, including cash, less its total liabilities. It is
used to indicate financial strength.
|
| New Construction |
New construction that has never
been occupied.
|
| Non-Conforming Mortgage Loan
|
Mortgage loan in which the LTV
ratio, the term, or other aspect of the loan exceeds permissible limits
specified in regulations.
|
| Non-Conforming Use |
Permitted use of real property,
even though it does not conform to current zoning laws, because it was
lawfully established and maintained before the current zoning laws were
in effect.
|
| Non-Occupant Borrower - Investor
|
Borrower who does not occupy the
property or a unit. One who intends to hold the property for rental
purposes.
|
| Non-Realty Items
|
Depending on where the property
is located, items such as washers, dryers, dishwashers, disposals,
stoves, carpeting, draperies, window air conditioners, etc., that are
included in the sale. Non-realty items that are given value on the
appraisal are usually considered sales concessions.
|
| NON-RECURRING CLOSING COSTS
|
Fees and costs associated with
the closing of a loan, such as title, appraisal, notary fees, etc., that
occur only once in the transaction and don’t recur.
|
| NOTARY PUBLIC
|
One who is authorized by the
state or Federal government to administer oaths and to attest to the
authenticity of signatures.
|
| NOTE |
An agreement containing an
expressed and absolute promise of the signer to pay to a named person or
bearer a definite sum of money at a specified date or on demand. Usually
provides for interest, and if concerning real property, is secured by a
mortgage or trust deed.
|
| Note Rate |
Starting interest rate for an
Adjustable Rate Mortgage (ARM) loan or variable-rate home equity line of
credit. At the end of the effective period for the start rate, the
interest rate adjusts periodically during the life of the loan based on
a specified financial index.
|
| Notice of Default
|
(1) Notice recorded after the
occurrence of a default under a deed of trust or mortgage (NOD).
(2) A notice required by an interested third party who has insured or
guaranteed a loan (MIC).
|
| NOTICE OF RESCISSION |
Borrowers’ signed
acknowledgement that they wish to cancel their loan. See NOTICE OF RIGHT
TO CANCEL.
|
| NOTICE OF RIGHT TO CANCEL
|
Under Regulation Z, customers
must be notified they are entering into a transaction that will result
in a lien against their primary residence. This document explains they
have the right to cancel the transaction, at no cost, within 3 business
days from the date of signing the closing documents on a loan.
|
| NOTIFICATION OF INCOMPLETENESS
LETTER |
| A letter sent to the customer
requesting additional information to continue with the loan application
process. |
