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N
Negative Amortization
A loan that the principal increases over time rather than decreases,
usually the payment is not enough to cover the interest accrued, and the
amount that is short is added to the principal, subsequently making the
loan amount increase.
Net
Worth
The equity of a person or business. Assets - Liabilities = Net Worth
No-Lien
Affidavit
A letter that is signed by the seller that states, that to the best of
their knowledge there have been no mechanics liens placed on the property
in the last 90 days.
Non-conforming
loan
Also called a jumbo loan. Conventional home mortgages not eligible for
sale and delivery to either Fannie Mae (FNMA) or Freddie Mac (FHLMC) because
of various reasons, including loan amount, loan characteristics or underwriting
guidelines. Non-conforming loans usually incur a rate and origination
fee premium. The current non-conforming loan limit is $275,000 and above.
Note
A written agreement containing a promise of the signer to pay to a named
person, or order, or bearer, a definite sum of money at a specified date
or on demand.
Novation
When a new borrower assumes a loan; this is the term that is used by a
lender that releases the original borrower from any personal liability.
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