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Frequently
Asked Questions
Glossary
of Real Estate Terms
Glossary for "N"
Nail
pops
Nails in load-bearing parts of new homes that pop out slightly because
of settling of the structure.
Needs-based
pricing
A seller's asking price that is based on factors such as the required
funds to pay off the mortgage, the cost of remodeling or the purchase
of another house.
Negative
amortization
The situation occurs when a borrower's monthly payment is not large
enough to cover both the principal and interest of a loan. As a
result, the outstanding balance of the loan actually grows larger
with each payment rather than smaller. Most fixed-rate loans are
not subject to negative amortization, but many adjustable-rate mortgages
are susceptible.
Negative-slope
driveway
A driveway that drops from street level to the garage.
Neo-traditional
planning
Planning of a community that favors the return of new-home development
with such traditional features as grid-street patterns, prominent
front porches, backyard garages, multi-use buildings and housing
clustered near commercial service areas.
Net
cash flow
Investment property that generates income after expenses such as
principal, interest, taxes and insurance are subtracted.
Net
worth
The worth of a person or company based on the difference between
total assets and liabilities.
New
Urbanism
A community design philosophy that favors the return of new-home
development with such traditional features as prominent front porches,
backyard garages, multi-use buildings and housing clustered near
commercial service areas.
Niche
A small recessed area in a wall, traditionally arched at the top.
NIMBY
(Not In My Back Yard)
The response sometimes given by neighborhoods and communities to
proposed changes or development.
No
cash-out refinance
The amount of the new mortgage covers the remaining balance of the
first loan, closing costs, any liens and cash no more than 1 percent
of the principal on the new loan.
No-competition lots
A lot in which the buyer's home will be constructed by a particular
builder.
No-documentation
loan
A loan application that does not require verification of income
but typically is granted in cases of large down payments.
Non-assumption
clause
A loan provision that prohibits the transfer of a mortgage to another
borrower without lender approval.
Non-liquid
asset
An asset such as a house that is not easily turned into cash.
Non-recurring closing costs
Costs that are one-time only fees for such items as an appraisal,
loan points, credit report, title insurance and a home inspection.
Note
The legal document that requires a borrower to repay a mortgage
at a certain interest rate over a specified period of time.
Note
rate
The interest rate specified in a mortgage note.
Notice of default
A lender's initial action when a mortgage payment is late and attempts
to reconcile the issue out of court have failed.
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