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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).
