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- N |
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| Negative Amortization |
This occurs when your mortgage balance is going up instead of down due to the fact that the monthly payments you're making on your home are not enough to cover all of the interest and any of the principal of your loan. When you make a payment and you don't pay enough money to cover the interest on the loan, the excess interest is added to your loan's balance. This is likely to happen with loans that have payment caps. |
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| No-Cost Loan |
A loan that you can obtain at no out-of-pocket cost to you is referred to as a no-cost loan. There are different types of no-cost loans. Some no-cost loans do have costs associated with them, but none of the normal lender costs that you regularly incur with home loans. Other no-cost loans are genuine no-cost loans where you will not incur any expenses. The interest rates on these loans are typically higher than loans where you would pay the costs. |
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| Non Assumption Clause |
If your loan has a non assumption clause, it means that you cannot transfer your mortgage to a buyer without the lender's prior approval. If you were to transfer the mortgage without the lender's prior approval, the lender may be able to demand full payment of your loan and you would be considered to be in default of your loan agreement. |
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| Note |
When you take out a home loan, your note is the legal document that serves as your written promise to repay your lender the money you have borrowed. The note outlines and specifies the terms of your agreement, such as the interest rate and the length of your loan. It is also referred to as a promissory note. |
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| Note Rate |
The interest rate that is outlined in your mortgage note and is the interest rate that you will pay on your home loan. |
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