NAHI (National Association of Home Inspectors)
A professional association of independent home inspectors whose members must meet the group's education and performance requirements. Call (800) 448-3942 for list of NAHI-certified inspectors in your area.
Nail pops
Nails in load-bearing parts of new homes that pop out slightly because of settling of the structure.
NAR (National Association of Realtors)
A trade organization for real estate agents and brokers who become members by agreeing to abide by the organization's code of ethics. Members may call themselves Realtors.
NAR Code of Ethics
A formal code of ethics and standards of practice established by the National Association of Realtors (NAR) and by which its members must abide.
National Association of Exclusive Buyer Agents
National trade organization of buyer's brokers whose members do not accept property listings. Call (800) 986-2322 for information and referrals.
National Association of Realtors (NAR)
A trade organization for real estate agents and brokers who become members by agreeing to abide by the organization's code of ethics. Members may call themselves Realtors.
National Council of State Housing Agencies
Nonprofit clearinghouse of information on local and state housing agencies. Consumers may call for names of agencies in their area. Phone: (202) 624-7710.
National Foundation for Consumer Credit
Nonprofit clearinghouse of information on nonprofit credit counseling centers nationwide. Consumers may call for names of centers in their area. Phone: (301) 589-5600.
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
Some adjustable rate mortgages allow the interest rate to fluctuate independently of a required minimum payment. If a borrower makes the minimum payment it may not cover all of the interest that would normally be due at the current interest rate. In essence, the borrower is deferring the interest payment, which is why this is called "deferred interest." The deferred interest is added to the balance of the loan and the loan balance grows larger instead of smaller, which is called negative amortization.
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 Effective Income
Gross income less federal income tax.
Net listing
A listing agreement in which the broker's commission consists of the amount above a net price set by the owner. If the net price is not met, a commission is not earned.
Net worth
The worth of a person or company based on the difference between total assets and liabilities.
Neutral bus bar
Grounded metal bar inside an electrical service panel or subpanel to which all neutral and grounding wires are connected.
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.
No Cash-Out Refinance
A refinance transaction which is not intended to put cash in the hand of the borrower. Instead, the new balance is calculated to cover the balance due on the current loan and any costs associated with obtaining the new mortgage. Often referred to as a "rate and term refinance."
No-cash-out refinance
The amount of the new mortgage covers the remaining balance of the first loan plus closing costs and any liens, and yields no more than 1 percent of the new loan's principal in cash.
No-competition lots
A lot in which the buyer's home will be constructed by a particular builder.
No-Cost Loan
Many lenders offer loans that you can obtain at "no cost." You should inquire whether this means there are no "lender" costs associated with the loan, or if it also covers the other costs you would normally have in a purchase or refinance transactions, such as title insurance, escrow fees, settlement fees, appraisal, recording fees, notary fees, and others. These are fees and costs which may be associated with buying a home or obtaining a loan, but not charged directly by the lender. Keep in mind that, like a "no-point" loan, the interest rate will be higher than if you obtain a loan that has costs associated with it.
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.
Non-solicitation order
An order issued by the secretary of state to brokers and agents, prohibiting them from soliciting listings in a designated area.
Nonassumption clause
A loan provision that prohibits the transfer of a mortgage to another borrower without lender approval.
Nonrecurring closing costs
One-time-only fees for items including an appraisal, loan points, credit report, title insurance, and home inspection.
Nosing
The front edge of a stair tread that extends over the riser.
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.
Novation
A release of liability to the first borrower of a loan, and the substitution of a subsequent borrower with the lender's approval.
