Negative Amortization – Notice of Default

by Maria SalovaJanuary 13, 2012

Negative Amortization

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.
Negative Amortization - Notice of Default

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.

No-Cost Loan

Definition: A loan that has no costs associated with the loan and typically carries a slightly higher interest rate.

Note

Definition:

  1. A debt security that is short term and with a maturity of up to 5 years.
  2. 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.

Note Rate

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.

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About The Author
Maria Salova
Hi! I’m Maria, the Marketing Coordinator for Homes.com. I am part of a dream team that is dedicated to running this awesome blog along with Homes.com’s social channels. If I am not busy writing blogs and socially sharing for Homes.com, you can find me painting, drinking tea with my friends, and doing DIY projects!

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