Southwest Florida Real Estate
Real Estate and Mortgage Terms Glossary
Real Estate and Mortgage transactions have languages all their own. Since most people don't use these terms on any type of a regular basis, we are providing this real estate and mortgage term glossary as a quick and easy reference for you to use. Rather than being unsure about a terms meaning, you can check here first. Of course, if you need a more in-depth understanding, please contact us directly and we'll be happy to assist you.
Terms - Letter N
NATIONAL ASSOCIATION OF REALTORS
An organization (NAR) 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.
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.
The evolution of neighborhood use and demographics over time. Economic fluctuations, municipal zoning changes and population shifts can effect the life cycle.
A subsection of a municipality that has been designated by a developer, economic forces or physical formations.
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.
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.
Many lenders offer loans that you can obtain at "no cost". You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, 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.
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.
The use of land for purposes contrary to the applicable municipal zoning specifications. Often occurs when zoning changes after a property is in use.
Any asset which can't be quickly converted into cash at little or no cost.
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
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.
An assumption of a mortgage in which the buyers of the property qualifies financially with the mortgagee, who then releases the seller from liability on the note; a full substitution of borrowers.