Glossary of Mortgage Terms

A mortgagee clause is a part of your homeowners insurance policy that protects your lender's financial interest in your property if it gets damaged or lost.

A mortgagor is the person or entity that borrows money from a lender to buy real estate, pledging the property as collateral until the loan is fully repaid.

A multifamily home is a type of residential property that has two or more separate housing units under one roof or on a single lot. Each unit has its own kitchen and entrance.

A multiple listing service, or MLS, is a private database that real estate agents use to share and search property listings in a specific region, giving buyers and sellers access to the widest pool of homes on the market.

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.