Title Insurance Dictionary-Glossary

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

N

Negative Amortization
Occurs when your monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is added to the unpaid balance of the loan. The danger of negative amortization is that the homebuyer ends up owing more than the original amount of the loan.

Negotiable Instrument
Under the Uniform Commercial Code, an instrument that meets certain legal requirements and can be transferred by endorsement or delivery.

Net Effective Income
The borrower's gross income minus federal income tax.

Net Worth
The difference between total assets and total liabilities.

Non Assumption Clause
A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender. Note: The signed obligation to pay a debt, as a mortgage note.

Notary Public
One authorized by law to acknowledge and certify documents and signatures.

Note
A written promise to pay a certain sum of money at a certain time. A negotiable note starts Pay to the order of and is transferable by endorsement similar to a check.