Glossary of Mortgage Terms

Negative amortization happens when your monthly mortgage payment doesn’t cover all the interest you owe, so the unpaid portion gets added to your loan balance and you end up owing more than you originally borrowed.

Negative equity happens when you owe more on your mortgage than your home is currently worth, a situation also called being "underwater" or "upside down" on your loan.

Net operating income (NOI) is the total revenue a rental or investment property brings in minus its operating costs. Investors and lenders use NOI to figure out how profitable a property is before taxes and debt service.

A Natural Hazard Disclosure (NHD) report is a document that tells home buyers whether a property in California sits inside any state-mapped natural hazard zone, including areas at risk for floods, earthquakes, or wildfires.

The Nationwide Multistate Licensing System (NMLS) is a centralized online database that tracks licensing and registration for mortgage loan originators, lenders, and other financial services professionals across all U.S. states and territories.

A no cash-out refinance is a type of mortgage refinance that lets you change your rate or term without taking money from your equity. It replaces your current home loan with a new one.

A no-closing-cost mortgage is a home loan where the lender covers your upfront closing fees in exchange for a higher interest rate or a larger loan balance.

If a mortgage doesn't meet Fannie Mae and Freddie Mac's size, credit, or underwriting standards, it's a non-conforming loan.

A non-QM loan is a residential mortgage that does not meet the qualified mortgage rules set forth by the Consumer Financial Protection Bureau. It enables borrowers with non-traditional income or credit profiles to provide alternative documentation.

A nontraditional mortgage is any home loan that falls outside the standard 30-year fixed-rate structure, giving borrowers different repayment options, qualification paths, or interest rate arrangements.