Glossary of Real Estate Terms (na-no)

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Nail pops

• Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure.

Needs-based pricing

• A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.

Negative amortization

• The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate loans are not subject to negative amortization, but many adjustable-rate mortgages are susceptible.

Negative-slope driveway

• A driveway that drops from street level to the garage.

Neo-traditional planning

• Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.

Net cash flow

• Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.

Net worth

• The worth of a person or company based on the difference between total assets and liabilities.

New Urbanism

• A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.

Niche

• A small recessed area in a wall, traditionally arched at the top.

NIMBY (Not In My Back Yard)

• The response sometimes given by neighborhoods and communities to proposed changes or development.

No cash-out refinance

• The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.

No-competition lots

• A lot in which the buyer's home will be constructed by a particular builder.

No-documentation loan

• A loan application that does not require verification of income but typically is granted in cases of large down payments.

Non-assumption clause

• A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.

Non-liquid asset

• An asset such as a house that is not easily turned into cash.

Non-recurring closing costs

• Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.

Note

• The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.

Note rate

• The interest rate specified in a mortgage note.

Notice of default

• A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.