Negative Amortization

This is an ARM allowing fluctuations in the mortgage interest rate without a direct relation to a minimum payment. When a borrower pays the minimum amount, this payment may not pay for all the interest that is. The borrower is is, therefore not making total interest payment and this is called a deferred interest. This deferred interest then adds to the loan amount and the balance on the loan increases.

No Cash-Out Refinance

This is a type of refinancing that does not payout cash to the borrower. This refinance calculates a new loan balance covering the current balance and the cost of refinancing. This is also called a "rate and term" refinance.

No-Cost Loan

A lender can offer a no cost loan, however; there may be fees that are not associated with lender costs that are included in the loan, although they are not charged by the lender. These fees can include normal mortgage transaction fees, notary fees, recording fees, title insurance, settlement fees escrow fees, and appraisal fees. The interest rate is usually higher for this loan type.

Note

This is a legal instrument making the borrower responsible for a mortgage loan with a specified interest rate for a specific time period.

Note Rate

This is the mortgage note interest rate.

No-Points Loan

This is a mortgage loan that does not charge points, however, the interest rate on the mortgage is at a higher rate, typically one quarter percent heigher than a loan that requires payment for points.

Notice Of Default

A legal written document sent to borrower who is in default for a mortgage payment, notifying the borrower of pending legal action, such as foreclose, is a possibility if the loan is not made current.