National Bank
Negative Amortization
Net Cash Flow
Net Income
Net Operating Income (NOI)
Net Worth
No Doc Loan
No Documentation Loan
Non-Assumption Clause
Non-Liquid Asset
Non-Recurring Closing Cost
Nondischargeable Credit
Nonpassive Income
Nonresident Alien
Note
Note Rate
Notice of Default

National Bank
A bank chartered by the federal government. These banks are members of the Federal Reserve System.

Negative Amortization
A loan program that requires only a minimum payment from the borrower while providing other payment options with each mortgage bill. The minimum payment is less than the interest due on the loan every month and results in a gradual increase in the loan principal or balance.

Net Cash Flow
After tax income plus depreciation expenses from an investment

Net Income
The profit or loss calculated after taxes have been paid.

Net Operating Income (NOI)
Method of calculating income from a property. This number is calculated by subtracating all expenses including mortgage payments, or debt service, from the gross income the property produces.

Net Worth
The total value of an individual's assets from personal property to real estate including jewelry, homes, investments.

No Doc Loan
An abbreviation for No-Documentation Loan.

No Documentation Loan
A loan program allowing borrowers to provide the lender with minimal information. The underwriter bases the approval of the loan on the borrower's credit history, the appraised value of the property, and the amount needed to be financed compared to the value of the property. This type of financing usually requires significantly more down payment and has much higher interest rates.

Non-Assumption Clause
A provision in a home loan agreement that does not allow for the transfer of a mortgage without the permission of the lender.

Non-Liquid Asset
Any asset that can be easily converted into cash including: stocks, 401Ks.

Non-Recurring Closing Cost
One time paid fees at the end of a real estate transaction including: points, appraisal, title fees, etc.

Nondischargeable Credit
A debt that cannot be eliminated or erased by declaring bankruptcy. These types of loans include federal taxes and education loans.

Nonpassive Income
(aka active income) Please refer to our definition for active income.

Nonresident Alien
An individual who is not a permanent resident or citizen of the United States.

Note
A legal acknowledgment of a debt accompanied with signed documents promising to repay the debt.

Note Rate
The percentage or interest rate a borrower is paying for use of the borrowed money.

Notice of Default
A step in the foreclosure process where the lender formally informs a court of the borrower's payments in arrears.