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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. |
net effective income
|
The borrower's gross income minus federal income tax. |
nonconforming use
|
The use of land for purposes contrary to the applicable
municipal zoning. |
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. |
novation
|
The acceptance of a new contract in substitution for the old
contract, with the intent that the new contract will extinguish
the original contract. Sometimes encountered in transfers of
deeds of trust, where the new owner assumes the debt and the
lender, through novation, releases the former owner from any
liability under the original promissory note and deed of
trust. |
