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| Term |
Definition |
| National Association of Realtors (NAR) |
Organization of Realtors®, devoted to encouraging professionalism in real estate activities. |
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Negative Amortization
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Occurs when your monthly payments are not large enough to pay all the
interest due on the loan. This unpaid interest is added to the unpaid
balance of the loan. The
danger of negative amortization is that the buyer ends up owing more than
the original amount of the loan.
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Net Effective Income
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The borrower's gross income minus federal income tax.
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NINA
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No Income No Asset. |
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NIV |
No Income Verification |
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No-Doc Mortgage
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A no-documentation or “no-doc” mortgage is a product that certain lenders offer to borrowers which generally requires a down payment of at least 5% to 30% or more of the home purchase price or who generally have at least 25% equity in their home. Loan programs featuring lower down payments (5-24%) are also available to borrowers with excellent credit. No-doc mortgages are generally a wise choice for self-employed people, those who do not wish to verify their income, and those with a brief or blemished credit history, or no credit.
The benefits of a no-doc mortgage include a shorter application process since you are not required to provide income, employment or asset documentation, as well as a streamlined approval process through the lender because there is little subsequent verification. However, no doc mortgages generally will be at slightly higher interest rates and are offered by fewer lenders.
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Non-Assumption Clause
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A statement in a mortgage contract forbidding the assumption of the
mortgage without the prior approval of the lender.
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Non-Conforming Loan
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A conventional home mortgage that does not meet the criteria of Fannie
Mae or Freddie Mac for various reasons including loan amount,
loan characteristics or underwriting guidelines.
Non-Conforming loans usually incur a higher rate and/or points.
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| Notice of Default (NOD) |
This is required by State Law to initiate a non-judicial foreclosure proceeding involving a public sale of the real property securing the deed of trust, the trustee under the deed of trust records a Notice of Default and Election to Sell (NOD) the real property collateral in the public records.
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