Negative Amortization: An increase
in principal balance which occurs when the monthly
payment do not cover all of the interest cost.
Net Effective Income: Income minus
the federal income taxes on that income.
Non-conforming Loan: A loan that
does not comply with guidelines (such as credit guidelines)
set forth by Fannie Mae or Freddie Mac.
Note: A written instrument that acknowledges
a debt and promises payment.
Notary Public: A person who is authorized
to take acknowledgements of certain documents, like
deed, contracts, and mortgages.
Notice of Default: Notice stating
that the borrower is in default on their loan, and
needs to make prompt payment.
