Glossary of Mortgage Terms

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-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 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.