| National Association of Realtors | The association of REALTORS dedicated to the protection and the preservation of the free enterprise system and the right of the individual to own real property as guaranteed by the Constitution of the United States of America. Each member of the NATIONAL ASSOCIATION OF REALTORS must adhere to a strict Code of Ethics and Standards of Practice designed to provide assurances to the public of the REALTORS integrity and professionalism. |
| Negative Amortization | (Also called Deferred Interest). 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 Effect Income | Gross income less federal income tax. |
| Net Listing | An arrangement whereby the Broker receives as commission all monies received above a minimum sales price agreed to by the owners and the Broker. |
| Net Worth | The value of all assets, including cash, less total 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). |
| Non Liquid Asset | An asset that cannot easily be converted into cash. |
| Non-conforming Loan | Loans that are above the loan limits set by FNMA and FHLMC. Also known as jumbo loans. |
| Nonconforming Use | A property which does not conform to the zoning of an area. |
| Note | A written promise to repay a certain sum of money on specified terms. |
| 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. |
1/5/2009 10:44 PM