REAL ESTATE 101

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

Net worth
The value of ones assets minus their liabilities.

Non-assumption clause
Loan provision that prohibits the transfer of a mortgage to another borrower without lender approval

Non-exclusive listing
A real estate listing to which no one agent or broker has claim.

Non-financial asset
An asset with a physical value such as land, property, or some type of object.

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
Legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time