Negative Amortization
Negative amortization occurs with some adjustable-rate mortgage (ARM) loans
when the payment amount is insufficient to cover the interest due on the loan.
Any interest not covered by payment is deferred and added to the principal balance.
Net Income
The difference between effective gross income and expenses, including taxes
and insurance. The term is qualified as net income before depreciation and debt.
Non-Conforming Loan
Also known as a 'Jumbo Mortgage.' Conventional home mortgages not eligible for
sale and delivery to either Fannie Mae (FNMA) or Freddie Mac (FHLMC) because
of various reasons, including loan amount, loan characteristics or underwriting
guidelines. Non-conforming loans usually incur a rate and origination fee premium.
Non-Owner Occupant
A borrower who will not be residing in the subject property as their principal
residence; the borrower on rental/investment property.
Note
A written promise to repay a loan. It includes the loan amount, interest rate
and term.
Notes Receivable
Income that is derived from a note (agreeing to repayment terms of monies borrowed)
between a borrower (the person entitled to receive payments under the note)
and another party (the person required to make payments under the note) which
identifies the repayment amount and duration of payments.