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Glossary

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A fee charged by title companies in some states to cover the cost of searching the public record for court orders against the current owner or proposed purchaser that could affect the title of the property.

National Association of Realtors®

An organization of Realtors®, devoted to encouraging professionalism in real estate activities

Negative Amortization

A gradual increase in mortgage debt that occurs when the periodic monthly payment is not sufficient to cover the monthly principal and interest due. The amount of the deficit is added to the remaining principal balance to create negative amortization.

Net Cash Flow

The income that remains for an investment property after the monthly operating income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance.

Net Worth

The total value of all of a person's or company's assets, minus all liabilities.

No Cash Out Refinance

A refinance loan is an amount that pays off the existing mortgage balance on the property and does not provide the borrower with any cash at closing.

No documentation loan

A loan application that does not require verification of income and/or assets but typically is granted in cases of large down payments. Generally a higher than market interest rate is charged due to the additional risk being assumed by the lender if information is not being documented.

Non-Conforming Loan

A mortgage that exceeds the maximum loan amount for the most common mortgage investors. The cost of obtaining a non-conforming mortgage is generally higher than the cost of obtaining a conforming mortgage. Also known as a jumbo loan.

Non-liquid Assets

Any assets that cannot easily be converted into cash

Notary Fee

A fee for a licensed notary public to certify your signature on the loan documents.

Note

The written agreement signed by the borrower at closing that contains the promise to repay the loan. The note also contains the terms of the loan, such as interest rate, payment, and term.

Note Rate

The interest rate stated on a mortgage note. Also called nominal rate or face interest rate

Notice of Default

Formal written notice to a borrower that a default on a loan has occurred and that legal action may be taken.

NY Tax & Title Search

A fee charged by New York title companies or attorneys to cover the cost of searching the public record for court orders against the current owner or proposed purchaser that could affect the title of the property. The tax records are searched as well.