Glossary
N
Negative Amortization -
Essentially occurs when a borrower makes a minimum payment that may not
cover the interest that is due. Loan balance then increases as a result.
Net Effective Income -
Gross income less federal income tax.
No Cash-out Refinance -
A refinance transaction that is not intended to put cash in the hand of the
borrower, but instead calculates a new balance to cover the balance due on a
current loan and any costs with obtaining a new mortgage.
No-Cost Loan -
A no-cost loan can either be: 1) a loan that has no "lender costs" associated with
it or, 2) a loan that also covers purchases or refinancing costs, which may be
incurred in buying a Home, obtaining and/or refinancing a loan, but are not
directly charged by the lender. The interest rate on this type of loan is higher.
Note -
A legal document that obligates a borrower to repay a mortgage loan at a stated
interest rate during a specified period of time.
Note Rate -
The stated interest rate on a mortgage note.
O
Origination Fee -
The fee imposed by a lender to cover certain processing expenses in connection
with making a loan. Usually a percentage of the amount loaned.
Owner Financing -
A property purchase that is partly or wholly financed by the seller.
Owner's Title Policy -
A policy protecting the buyer for the amount of the purchase price in the event of a
future title dispute.
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| For additional questions please contact me at 281-650-7592 or via e-mail at kowens@closingjust4you.com |
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