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Negative Amortization: When a borrower’s monthly payments do not cover the entire amount of interest due, the left over interest is added to the principal actually increasing the loan amount. This is one of many types of creative financing available to borrowers in the residential market, but it can get home buyers into trouble if they are not careful.

Negotiable Rate Mortgage (RBM): A loan in which the interest rate adjusts periodically.

Net Disposable Income: Monthly Net Income – Principal, Interest, Taxes, Insurance, and any other obligation. This amount is what is left over for general living expanses.

Net Effective Income: Borrower’s Gross Income - Federal Income Tax.

Net Income: Adjusted Gross Income – Operating Expenses

Net Rental Income: Monthly Gross Rental Income – Mortgage Payment, Insurance, Taxes, Maintenance, and other expenses

Net Worth: Total assets – Total liabilities. This could be for an individual as well as a corporation.

Non-Conforming Loan: A loan that doesn’t meet the requirements of Fannie Mae or Freddie Mac.

Non-Conforming Use: A building that doesn’t conform to the current zoning. Many properties that are non-conforming have grandfather clauses that allow them to continue to be used.

Notary Public: Someone registered with the state that acknowledges signatures and administers oaths.

Note: A written document containing a promise to pay a specific sum of money at a certain time or on demand and is usually secured by a mortgage or trust deed.
 
Notice of Default: A noticed filed with the court system acknowledging that the borrower of a mortgage or trust deed is in default.