Investment Glossary:

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Net Book Value: The capitalized cost of an asset, less depreciation taken for accounting purposes, based on the method used for the computing of depreciation over the useful life of the asset. 

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.

Negotiation:  The process of bargaining that precedes an agreement.

Net Cash Flow:  Investment property that generates income after expenses such as principal, interest, taxes and insurance are subtracted

Net Operating Income (NOI):  From income producing property, the gross income minus the total of all expenses except for debt service. Cash flow is defined as NOI minus the total of all debt service payments.

Net Present Value: The method of applying an appropriate discount to cash to be received in the future to arrive at the present value of those future earnings. 

No Cash-Out Refinance:  The amounts 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 Income Verification Loan (NIV):  A type of loan generally limited to the self-employed that is underwritten based on the borrower's written representation of their annual income as stated on the loan application. No tax returns, operating statements or other verification of the income is required. Debt ratios are computed based on the stated income. The primary intent of these programs is to allow owners of small businesses to use their actual cash flows rather than the net incomes normally reported in tax filings. Higher interest rates on these products compensate lenders for their higher risks. (See definition of "debt ratio" above.)

Non-Assumption Clause:  A loan provision that prohibits transferring a mortgage to a third party without the prior approval of lender.

Non-conforming Loan:  A loan not meeting the underwriting requirements of Fannie Mae and Freddie Mac. I.e., the vast majority of loans.

Non-Disturbance Agreement: An agreement that permits a tenant under a lease to remain in possession of the property for the term of the lease despite any foreclosure proceedings. 

Non-Qualifying:  Buyer is not required to qualify through traditional bank financing requirements

Non-Recourse Loan:  A type of mortgage loan in which the borrower cannot be held personally liable in the event of foreclosure.

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:  A written promise to repay a certain sum of money on specified terms.

Note Broker:  An individual who acts as an intermediary between a holder of an existing note and a prospective purchaser of the note.