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Negative amortization

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.

Net cash flow

The income that an investment property generates after expenses such as principal, interest, taxes and insurance are subtracted.

Net lease

A lease in which the tenant pays, in addition to rent, all operating expenses such as real estate taxes, insurance premiums, and maintenance costs.

Net operating income (NOI)

The potential rental income plus other income, less vacancy, credit losses, and operating expenses.

Non-assumption clause

A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.

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 property 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, which informs that legal action may be taken.

Some definitions come from the Certified Commercial Investment Member Institute (CCIM).