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N
negative
amortization
A gradual increase in mortgage debt that occurs when the monthly payment
is not large enough to cover the entire principal and interest due. The
amount of the shortfall is added to the remaining 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 (PITI) for the mortgage, homeowners' association
dues, leasehold payments and subordinate financing payments.
net
worth
The value of all of a person's assets, including cash, minus all liabilities.
no
cash-out refinance
A refinance transaction in which the new mortgage amount is limited to
the sum of the remaining balance of the existing first mortgage, closing
costs (including prepaid items), points, the amount required to satisfy
any mortgage liens that are more than one year old (if the borrower chooses
to satisfy them) and other funds for the borrower's use (as long as the
amount does not exceed 1 percent of the principal amount of the new mortgage).
nonliquid
asset
An asset that cannot easily be converted into cash.
note
A legal document that obligates a borrower to repay a mortgage loan at
a stated interest rate during a specified period of time.
note
rate
The interest rate stated on a mortgage note.
notice
of default
A formal written notice to a borrower that a default has occurred and
that legal action may be taken.
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