negative amortization
A gradual increase in mortgage debt that occurs when the monthly payment is not large enough to cover the full amount of interest due. The amount of the shortfall is added to the remaining balance to create "negative" amortization.

net cash flow
The income that remains for an investment property after the monthly operating income is reduced by the monthly housing expense, which includes principal, interest, taxes, and insurance (PITI) for the mortgage, homeowners' association dues, leasehold payments, and subordinate financing payments.

net worth
The value of all of a person's assets, including cash, minus all liabilities.

nonliquid asset
An asset that cannot easily be converted into cash.

non-occupant co-borrower
A non-occupant co-borrower is someone who applies to get a loan with another person but they don't intend on living in the property. An example of this is a young couple buying a home who need their parents as co-signers in order to qualify. The parents, since they're not going to live in the home, are non-occupant co-borrowers.

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 interest rate stated on a mortgage note.

notice of default
A formal written notice to a borrower that a default has occurred and that legal action may be taken.