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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.
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Nonliquid Asset |
An asset that cannot easily be converted into cash. |
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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.
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Note |
A legal document that obligates a borrower to repay a mortgage loan at a stated
interest rate during a specified period of time. |
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Net Worth |
The value of all of a person's assets, including cash, minus all liabilities.
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Note Rate |
The interest rate stated on a mortgage note.
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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).
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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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