Mortgage Glossary – N
A loan payment schedule in which the outstanding principal balance of a loan goes up rather than down because the payments do not cover the full amount of interest due. The monthly shortfall in payment is added to the unpaid principal balance of the loan.
The amount left after taxes have been paid.
The total value of all assets, such as house, car, furniture and investments, minus all debts, such as mortgages and credit card bills.
No Cash-Out Refinance
A home loan for a lower interest rate in an amount that does not exceed closing costs and the original mortgage’s outstanding principal.
A person who is not a permanent resident or a citizen of the United States and who is generally taxed on income from U.S. sources.
Notice of Default
A step in the foreclosure process in which the lender formally tells a court that the borrower is in arrears.
A provision in a mortgage contract prohibiting the assumption of the mortgage by another borrower without the lenders permission.
Legal document obligating a borrower to repay a loan at a stated interest rate during a specified period of time.