| NAR - National Association of Realtors |
The largest trade association in the country serving over
700,000 Realtors. The purpose of the association is to enhance the ability and
opportunity of its members to conduct business successfully and ethically and
to promote the preservation of the right to own, transfer and use real
property. |
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| Negative Amortization |
Amortization means that monthly payments are large enough to
pay the interest and reduce the principal on your mortgage. Negative
amortization occurs when the monthly payments do not cover all of the interest
cost. The interest cost which is not covered by the payment is added to the
unpaid principal balance. This means that even after making many payments, you
could owe more than you did at the beginning of the loan. Negative amortization
can occur when an ARM has a payment cap that results if monthly payments not
high enough to cover the interest due. |
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| Net Listing |
A price, which must be expressly agreed upon, below which the
owner will not sell the property and at which the broker will not receive a
commission; the broker receives the excess over and above the net listing price
as commission. The broker in this type of listing will have a very hard time
maintaining his fiduciary responsibilities to his seller since his interests
are potentially at odds with the interests of the seller. |
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| Net Cash Flow |
The income that remains for an investment property after the
monthly operating income is reduced by the monthly housing expense, which
includes principal, interest, taxes, and insurance (PITI) for the mortgage,
homeowners' association dues, leasehold payments, and subordinate financing
payments. |
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| Net Worth |
The value of all of a person's assets, including cash, minus
all liabilities. |
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| Net Lease |
A lease in which the tenant pays such expenses as taxes,
insurance, repairs, utilities, etc. |
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| No Closing Cost Loan |
A loan in which the fees the borrower(s) are not required to
pay cash out-of-pocket at closing for the normal closing costs. The lender
typically includes the closing costs in the principal balance or charges a
higher interest rate than for a loan with closing costs to cover the advance of
closing costs. |
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| No Out Of Pocket Cost Loan |
A loan in which the fees the borrower(s) are not required to
pay cash out-of-pocket at closing for the normal closing costs. The lender
typically includes the closing costs in the principal balance or charges a
higher interest rate than for a loan with closing costs to cover the advance of
closing costs. |
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| Non Assumption Clause |
A statement in a mortgage contract forbidding the assumption
of the mortgage without the prior approval of the lender. |
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| Non-Conforming Loan |
Conventional home mortgages not eligible for sale and delivery
to either FNMA or FHLMC because of various reasons, including loan amount, loan
characteristics or underwriting guidelines. |
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| Non-Liquid Asset |
An asset that cannot easily be converted into cash. |
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| Non-Conforming |
A mortgage loan that does not conform to regulatory limits
such as loan-to-value ratio, term and other characteristics. |
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| Nonconforming Use |
A property which does not conform to the zoning of an area.
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| Notary |
An official authorized by federal or local government to
attest and certify certain documents by his or her hand and official seal. |
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| Note Rate |
The interest rate stated on a mortgage note. |
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| Note |
A legal document that obligates a borrower to repay a mortgage
loan at a stated interest rate during a specified period of time. |
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| Notice Of Default |
A formal written notice to a borrower that a default has
occurred and that legal action may be taken. |