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Negative amortization -- When your monthly payments are not large enough to pay all the interest due on the loan, the unpaid interest is added to the unpaid balance of the loan. The homebuyer ends up owing more than the original amount of the loan.

Negotiable rate mortgage -- A loan in which the interest rate is adjusted periodically.

Net effective income -- Gross income minus federal income taxes.

No-doc loan -- A loan requiring very little loan documentation. These loans usually require large (25 percent) down payments.

Non-assumption clause -- A statement in a mortgage contract forbidding the assumption of the mortgage without the lender's approval.

Note -- A signed obligation to pay a debt.

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