Residential Mortgage Terms Glossary N - Ocean Capital Lending

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Residential Mortgage Terms Glossary N

Negative Amortization
An increase in the balance of a loan caused by adding unpaid interest to the loan balance; this occurs when the payment does not cover the interest due.

Net Worth
The value of a company or individual’s assets, including cash, less total liabilities.

Nonliquid Asset
An asset that cannot easily be converted into cash.

Note
A written promise to pay a specified amount under the agreed upon conditions.

Note Rate
The interest rate stated on a mortgage note, or other loan agreement.