Mortgage and Loan Glossary (N)
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National Association of Purchasing Management (NAPM) Survey
A reading above 50% generally indicates that the manufacturing sector
is expanding, and below 50% signifies contraction. The prices-paid
index gives insight into inflation in the manufacturing sector. Frequency:
monthly. Source: National Association of Purchasing Management.
National Association of Realtors®
An organization of Realtors®, devoted to encouraging professionalism
in real estate activities.
national tenant
A lessee with a presence and established reputation in most of the
United States. These tenants are typically well-known and usually
have better credit than local tenants
negative amortization
A gradual increase in mortgage debt that occurs when the periodic monthly
payment is not sufficient to cover the monthly principal and interest
due. The amount of the deficit is added to the remaining principal
balance to create negative amortization.
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.
net worth
The total value of all of a person's or company's assets, minus all
liabilities.
New Home Sales
Reports the number of new single-family homes sold, expressed on an
annual basis. Can be combined with Existing Home Sales to determine
the total volume of home sales, a strong predictor of future national
mortgage origination volume. Frequency: monthly. Source: Commerce
Department.
no cash-out refinance
A refinance agreement in which the new loan amount is limited to the
sum of the following:
1) remaining balance of the existing first mortgage,
2) closing costs (including prepaid items),
3) points,
4) the amount required to satisfy any mortgage liens that are more
than one year old (if the borrower chooses to satisfy them),
5) and other funds for the borrower's use (as long as the amount does
not exceed 1 percent of the principal amount of the new mortgage).
non-conforming loan
A loan that does not conform to the guidelines established by Fannie
Mae or Freddie Mac. A loan that is larger than the conforming loan
limit is called a jumbo loan. Loans that do not meet the credit quality
of conforming loans ("A" paper) are called "B", "C" and "D" paper
loans. Second mortgages, credit lines, home equity loans and home
improvement loans are also non-conforming loans. Also see conforming
loan.
nonliquid assets
Any assets that cannot easily be converted into cash.
nonrecurring closing costs
One-time-only fees for items including an appraisal, loan points, credit
report, title insurance, and home inspection.
note
A written legal document that obligates a borrower to repay a loan
at a stated interest rate during a specified time period.
note rate
The interest rate stated on a mortgage note. Also called nominal rate
or face interest rate.
notice of default
Formal written notice to a borrower that a default on a loan has occurred
and that legal action may be taken.