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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.
Negotiation
The process of bargaining that precedes an agreement.
Successful negotiation generally results in a contract
between the parties.
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).
Nonconforming Use
A land use that violates zoning regulations or codes but is allowed to continue because it began before the
zoning restriction was enacted.
Notary Public
An officer who is authorized to take acknowledgements to certain types of documents, such as
deeds,
contracts and mortgages,
and before whom affidavits may be sworn.
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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