Negative Amortization
An increase in the outstanding balance of a loan resulting from the failure of periodic debt service payments to cover required interest charged on the loan. Generally occurs under indexed loans for which the applicable interest rate may be changed without affecting the monthly payments. Negative amortization will occur if the indexed interest rate is increased.

Net Income
In accounting, the amount remaining after all expenses have been met. In appraisal, same as net operating income.

New Home Sales
The Census Bureau surveys builders nationwide and bases their figure on the number of contracts signed for new homes. Because it reflects contracts rather than closings (as is the case with existing home sales), new homes sold should more quickly reflect changes in mortgage rates and the economic environment. The reported figure is generally a seasonally adjusted, annual rate.

No Money Down
General term referring to real estate acquisition strategies based on seller-provided financing and/or existing loan assumption and minimal use of cash down payments. It is a method of achieving maximum profits from real estate investments.

Notarize
To attest in one's capacity as a notary public, to the genuineness of a signature.

Notary Public
An officer who is authorized to take acknowledgments to certain types of documents, such as deeds, contracts, and mortgages, and before whom affidavits may be sworn.

Note
A written instrument that acknowledges a debt and promises to pay.