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GLOSSARY 'N' |
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1. |
National Association of Realtors:
An organization that sets the standards for the real estate profession and enforces a rigid code of ethics in real estate dealings.
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2. |
Negative Amortization:
Occurs when monthly payments fail to cover the interest cost. The unpaid interest is added to the unpaid balance, where the principal balance increases rather than decreases.
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No Cash-Out Refinance:
Also referred to as rate reduction mortgage or rate and term refinance. The mortgage amount is limited to the sum of the unpaid principal balance of any existing first mortgage(s) plus closing costs.
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4. |
No-Doc Loan:
This refers to a mortgage loan where the borrower does not verify any of their income.
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5. |
No-Ratio Loan:
This mortgage loan requires the borrower(s) not to state or verify any income.
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Nonconforming Mortgage:
A mortgage loan in which the loan amount exceeds permissible limits as specified in agency regulations.
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Non-recourse Loan:
Type of loan that prohibits the lender from attempting to recover against the security value for the loan falls below the amount required to repay the loan.
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8. |
Note:
A general term for a document signed by a borrower that is an acknowledgment of the debt, and is, by inference a promise to pay.
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