Glossary of Mortgage Terms

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.

An open house is a planned event where people can look at a house that is for sale. It is usually hosted by the seller's real estate agent for a set amount of time, usually one to three hours.

Ownership interest in a property is the set of legal rights you hold as an owner or co-owner of real estate, covering how you can use, share, and pass on your stake in the home.

Passive real estate investing is a way to earn money from property ownership or real estate-backed assets without handling day-to-day management, maintenance, or tenant relationships yourself.

A piggyback loan is a second mortgage taken out at the same time as your main home loan, letting you split the purchase price across two loans so you can put less cash down and still skip private mortgage insurance.