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.
