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Mortgage Loan Glossary - 'N'

Use the alphabet letters below to navigate to the words in this glossary.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

- N -

Negative Amortization

An increase in the outstanding principal balance that occurs when the monthly payments do not cover all of the interest due. The amount of interest that is not covered by the payment is added to the unpaid principal balance.
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Net Worth

The value of all assets, including cash, less total liabilities. It is often used as an underwriting guideline to indicate an individual's credit worthiness and financial strength.
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Non-conforming Loans

Any loan that does not meet guidelines established by the agencies (e.g., Federal National Mortgage Association (Fannie Mae) or the Federal Home Loan Mortgage Corporation (Freddie Mac)).
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Notice of Incomplete Application (NOIA) Letter

A disclosure that advises an applicant that the mortgage application is incomplete and indicates any additional documentation is required by the lender. This might include pay stubs, W-2s, bank statements or other verification documentation.
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Note

The document giving evidence of mortgage indebtedness, including the amount and terms of repayment.
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Note Rate

The rate of interest indicated on the mortgage note.
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