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Real Estate Glossary
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negative amortization
A loan in which the monthly payments are smaller than the monthly interest generated. As the unpaid interest is added to the principal, the amount owed on the loan grows.
no cash-out refinance
A loan whose proceeds are handed not to the borrower, but directly to the lender of an old loan.
no-cost loan
A loan in which the lender pays for your closing costs such as settlement fees, title insurance, escrow fees, etc. Such a loan usually has a higher interest rate than a traditional mortgage.
note
A legal document acknowledging a debt which the borrower must repay at a stated interest rate during a specific period of time.
note rate
The interest rate on a mortgage note.
 
 
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