Mortgage Glossaryn
What is Negative Amortization?
Amortization means that monthly payments are large enough to pay the interest and reduce the principal on your mortgage. Negative amortization occurs when the monthly payments do not cover all of the…
What is Net?
After…
What is Net effective income?
Gross income minus estimated federal income…
What is Net Worth?
The value of all of a person's assets, including…
What is No Income Verification?
Income verification can cause problems for some borrowers, especially self-employed borrowers or people who receive a commission-based salary. Mortgages that do not require income verification are…
What is No Ratio Loan?
A no ratio loan is for borrowers who do not wish to disclose their income; therefore, there is no debt-to-income ratio for the lender to consider. The no ratio loan borrower has good credit and…
What is Non Liquid Asset?
An asset that cannot easily be converted into…
What is Non-assumption clause?
A statement in a mortgage contract forbidding the assumption of the mortgage by another borrower without the prior approval of the…
What is Non-conforming loan?
A conventional loan that can not be sold to Fannie and Freddie Mac. Often, these loans are larger than the conforming loan…
What is Non-dischargeable debt?
Debt, such as taxes, that cannot be forgiven in a bankruptcy…
What is Non-Prime Loans?
Non-Prime is a term for loan types that do not fit into the restraints of government lending standards known as Prime, Agency, or A-Paper Lending and defined as Qualified Mortgages.
Non-Prime…
What is Non-warrantable condo?
Non-warrantable condo is a condominium property in which the loan is not eligible to be sold to Freddie Mac or Fannie Mae, and as such, they are considered by most banks to be more…
What is Notary?
A notary is a certified witness that validates signatures on official documents. In order to legally operate, notaries must obtain licensing and become certified within the state they are employed. A…
What is Note?
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of…
What is Notice of default?
Written notice to a borrower that a default has occurred and that legal action may be…
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