NAR - The National Association of REALTORS ®. Only brokers who are members of the local real estate boards are entitled to use the trademark name “REALTOR ®.”
Negative Amortization - This occurs when monthly payments fail to cover the interest cost. The interest that isn't covered is added to the unpaid balance, which means that even after several payments you could owe more than you did at the beginning of the loan. Negative Amortization can occur when an ARM has a payment cap that results in monthly payments that aren't high enough to cover the interest.
Negotiate - To transact business; to arrange terms of a contract.
Note - A unilateral agreement containing an express and absolute promise of the signer to pay to a named person, order, or bearer, a defined sum of money at a specified date or on demand. Usually provides for interest and concerning real property, is secured by a mortgage or trust deed.
Notice of Default - A notice filed to show that the borrower under a mortgage or deed of trust is in default (behind on the payments).
[Return to top]
Have a discrepancy with the definitions? If so, please email me, the webmaster. It is in my best interest to provide you with the most thorough and comprehensive mortgage glossary on the internet. -Eric J. Sunquist
