Real Estate Terms Glossary - N

· Nail pops   Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure.

· Needs-based pricing   A seller's asking price that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling or the purchase of another house.

· Negative amortization   The situation occurs when a borrower's monthly payment is not large enough to cover both the principal and interest of a loan. As a result, the outstanding balance of the loan actually grows larger with each payment rather than smaller. Most fixed-rate loans are not subject to negative amortization, but many adjustable-rate mortgages are susceptible.

· Negative-slope driveway   A driveway that drops from street level to the garage.

· Neo-traditional planning   Planning of a community that favors the return of new-home development with such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.

· Net cash flow   Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted.

· Net worth   The worth of a person or company based on the difference between total assets and liabilities.

· New Urbanism   A community design philosophy that favors the return of new-home development with such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas.

· Niche   A small recessed area in a wall, traditionally arched at the top.

· NIMBY (Not In My Back Yard)   The response sometimes given by neighborhoods and communities to proposed changes or development.

· No cash-out refinance   The amount of the new mortgage covers the remaining balance of the first loan, closing costs, any liens and cash no more than 1 percent of the principal on the new loan.

· No-competition lots   A lot in which the buyer's home will be constructed by a particular builder.

· No-documentation loan   A loan application that does not require verification of income but typically is granted in cases of large down payments.

· Non-assumption clause   A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.

· Non-liquid asset   An asset such as a house that is not easily turned into cash.

· Non-recurring closing costs   Costs that are one-time only fees for such items as an appraisal, loan points, credit report, title insurance and a home inspection.

· Note   The legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.

· Note rate   The interest rate specified in a mortgage note.

· Notice of default   A lender's initial action when a mortgage payment is late and attempts to reconcile the issue out of court have failed.