We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

# A B C D E F G H I J K L M N O P Q R S T U V W XYZ

N Terms

Negative Amortization: The gradual increase in the balance of a loan, caused by adding unpaid interest to the loan balance. The unpaid interest is a result of monthly payments being less than the amount required to pay the interest. Negative amortization can occur on a potential or scheduled basis. (a) Potential negative amortization: Negative amortization that results from borrower optional payment caps. (b) Scheduled negative amortization: Negative amortization that is scheduled to occur during the life of the loan.

 

Net Yield: The part of the gross yield remaining after the deduction of all charges or costs, including servicing.

 

NOD: See Notice of Default.

 

Non-Owner-Occupied Property: Property purchased by a borrower not for a primary residence but as an investment with the intent of generating rental income, tax benefits and profitable resale.

 

Note: A written promise by one party to pay a specified sum of money to a second party under conditions agreed upon mutually. Also called "promissory note."

 

Note Rate: The interest rate on the mortgage loan.

 

Notice of Default : A notice recorded after the occurrence of a default under a deed of trust or mortgage. Typically required by an interested third party that has insured or guaranteed the loan.