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Real Estate and Mortgage Terms Glossary

If you need a more in-depth understanding of a particular term, or have additional questions on any of these definitions, please contact us directly and we'll be happy to assist you.

Glossary Index

A | B | C | D | E | F | G-H | I-K | L | M | N | O | P-Q | R | S | T | U-Z


Terms starting with Letter N

NATIONAL ASSOCIATION OF REALTORS (NAR)

An organization overseeing Brokers and Agents by promoting standards of professionalism and ethics in its members.

NATIONAL SOCIETY OF REAL ESTATE APPRAISERS

An organization founded in 1956 which promotes standards of professionalism in its members. Visit www.nsrea.org

NATURAL VACANCY RATE

The percentage of vacant properties in a given area that is the result of natural turnover and market forces.

NEGATIVE AMORTIZATION

When the balance of a loan increases instead of decreases. Usually due to a borrower making a minimum payment on an Adjustable Rate Mortgage during a period when the rate fluctuates to a high enough point that the minimum payment does not cover all of the interest.

NEIGHBORHOOD LIFE-CYCLE

The evolution of neighborhood use and demographics over time. Economic fluctuations, municipal zoning changes and population shifts can effect the life cycle.

NEIGHBORHOOD

A subsection of a municipality that has been designated by a developer, economic forces or physical formations.

NET INCOME

The sum arrived at after deducting the expenses of operation from gross income.

NET LEASABLE AREA

The space in a development, outside of the common areas, that can be rented to tenants.

NET WORTH

The value of all of a person's assets, including cash, minus all liabilities.

NEW ENGLAND COLONIAL

An architectural style dating from early American history typified by a two-story building with clapboard siding.

NO-COST LOAN

Many lenders offer loans that you can obtain at "no cost."  You should inquire whether this means there are no "lender fee"  costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transaction, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point loan,"  the interest rate will be higher than if you obtain a loan that has costs associated with it.

NO-POINT LOAN

A loan with no "points."  The interest rate on such a loan will be higher than a loan with points paid. Also sometimes refers to a refinance loan where closing costs are included in the loan. See Locking Interest Rates.

NON-CONFORMING USE

The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a property is in use.

NONLIQUID ASSET

Any asset which can't be quickly converted into cash at little or no cost.

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. See Interest Rates.

NOTICE OF DEFAULT

Formal written notice from a lender to a borrower that default has occurred.

NOVATION

An assumption of a mortgage in which the buyer(s) of the property qualifie financially with the mortgagee, who then releases the seller from liability on the note; a full substitution of borrowers.

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Page Authored by Benjamin Dona of Gulf Coast Associates, Realtors