Negative Amortization – Notice of Default
Definition: Negative amortization is an increase in mortgage debt that occurs when the monthly payment does not sufficiently cover the interest that is due, therefore the balance owed keeps increasing.
No Cash-Out Refinance
Definition: Is the refinancing of mortgage that is designed to cover the remaining debt and fees for getting a second loan.
Definition: A loan that has no costs associated with the loan and typically carries a slightly higher interest rate.
- A debt security that is short term and with a maturity of up to 5 years.
- A legal document that enforces borrowers to repay for mortgage loans at a specific interest rate during a specific period of time or on demand.
Definition: An interest that is defined in the mortgage note.
Notice of Default
Definition: A notice, typically a formal one, to a borrower stating that default has occurred and that legal action may be or will be taken.