Mortgage
Terms
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A B C D E F G H I J K L M
N O P Q R S T U V W X Y Z
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Negative Amortization
Occurs when your monthly payments are not large enough to pay all the interest
due on the loan. This unpaid interest is added to the unpaid balance of the loan.
The danger of negative amortization is that the home buyer ends up owing more
than the original amount of the loan.
Net Effective Income
The borrower's gross income minus federal income tax.
Non Assumption Clause
A statement in a mortgage contract forbidding the assumption of the mortgage
without the prior approval of the lender. Note: The signed obligation to pay
a debt, as a mortgage note.
Note
A legal document that obligates a borrower to repay a mortgage loan at a stated
interest rate during a specified period of time.
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