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.
O - Real Estate and Mortgage Terms and Definitions
Online real estate listings Properties listed for sale on the Internet.
Open house A marketing tool in which a listing agent opens a house for view.
Open listing A property given to a number of brokers to market at the same time.
Open space Undeveloped land or common areas in a planned community reserved for parks, walking paths or other natural uses.
Option A situation in which a buyer puts down money for the right to purchase a piece of real estate within a set time period but does not have an obligation to buy.
Oral agreement Contractual arrangements that are not in writing and are usually not legally binding.
Original principal balance The amount of principal owed on a loan before a borrower makes any payments.
Origination fee A fee charged by most lenders--also called points--for processing a loan. A point is 1 percent of the total loan amount.
Overhang A protruding structural feature.
Owner financing A transaction in which the seller of a property agrees to finance all or part of the purchase.
