Back Home
Negative Amortization
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 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
A legal document that obligates a borrower to repay a mortgage loan at a stated interest rate during a specified period of time.
