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Negative Amortization
Something which 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 home buyer ends up owing more than the original amount of the loan.

Negotiable Rate Mortgage (RBM)
A loan in which the interest rate is adjusted periodically. (See adjustable rate mortgage.)

Net Effective Income
The borrower's gross income minus federal income tax.

No-doc loan
A loan requiring very little loan documentation. The borrower generally puts down a sizable down payment, usually at least 25%. These loans tend to be more common among self-employed people (those who have enough for the down payment) whose tax returns might indicate earnings substantially less than what would otherwise be acceptable to the lender.

Non Assumption Clause
A statement in a mortgage contract forbidding the assumption of the mortgage without the prior approval of the lender.

Note
The signed obligation to pay a debt, as a mortgage note.

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