Nail pops

Nail pops are nails located in lead-bearing parts of new homes that pop out slightly because of settling of the structure.  These imperfections occur most frequently in drywall when the point at which the drywall attaches to the framing of a house fails.  Nail pops typically occur either because the drywall of a house has moved while the nail has stayed in the same location, or because the nail has moved and the drywall has remained static.  Sometimes, a nail head becomes exposed.  Nail pops may be either convex or concave, and are usually the size of a coin.

Needs-based pricing

Needs-based pricing refers to a seller's asking price for a parcel o real property that is based on factors such as the required funds to pay off the mortgage, the cost of remodeling the home if necessary, or the purchase of another house.  For example, a seller of property who needs a particular amount of money to break even on the property if it was a real estate investment may price the property to reflect that need, hoping to make the balance necessary off of the ultimate sales price.  However, needs-based pricing is not likely to be successful, given that in most cases, the market drives pricing, and the market does not account for individuals´ financial needs.

Negative amortization

Negative amortization refers to the situation that occurs when the monthly payment on a loan payable by a borrower is not large enough to cover both the principal and the interest of a loan.  As a result, the outstanding balance owed on the loan actually grows larger with each payment, rather than smaller.  Most conventional home loans that carry fixed interest rates are not subject to negative amortization, but many adjustable-rate mortgages are susceptible.  Negative amortization is a problematic situation for a borrower to face because he or she never gets closer to paying off the outstanding balance on the loan.

Negative-slope driveway

A negative-slope driveway is a driveway that inclines downward from street level to the garage or carport of a home.  Negative-slope driveways are most often found in association with homes that are constructed below street level, which may provide appealing benefits to residents such as privacy and protection against noise and pollution that result from living at street level.  The disadvantages of a negative-slope driveway are mainly tied to the maintenance required, such as shoveling snow, and factors such as difficulty exiting to street level if climatic factors are such that a negative-slope driveway tends to become slick when covered in snow or ice.

Neo-traditional planning

Neo-traditional planning is a type of community planning that favors the return of new-home development.  Common aspects of developments that result from neo-traditional planning include such traditional features as grid-street patterns, prominent front porches, backyard garages, multi-use buildings, and housing clustered near commercial service areas.  One of the major concepts behind neo-traditional planning, and a popular aspect of communities subject to some planning that is frequently used by community developers in marketing, is the idea of living in a small-town atmosphere, even when a community is located in a large, densely populated suburban area.

Net cash flow

Net cash flow is the amount of money received from an investment property that generates income for the investor/property owner, after the deduction of relevant expenses.  Expenses include costs such as payment on the principal of a mortgage on the property, interest associated with the loan, taxes payable on the property to federal, state, and local authorities, and any applicable insurance payments.  The total income a real estate investor realizes from an income-generating property is referred to as "gross" income; the "net" means that liabilities and financial obligations have been deducted from that amount.

Net worth

Net worth is the worth of a person or a company based on the difference between the person or company´s total assets and liabilities.  The total income realized from all sources by an individual or entity is known as that individual or entity´s gross income, and gross worth is a combination of gross income and any other assets, such as investments in real estate, stocks and bonds, cash, and other property.  Liabilities include any debts or other financial obligations that the person or entity is responsible for.  The balance of assets and liabilities constitutes the net worth of the individual or entity, or how much they are actually worth at a given point in time.

New Urbanism

New Urbanism is a community design philosophy that favors the return of new-home development that offers traditional, old-style community characteristics.  New Urbanism is the result of neo-traditional planning.  Communities of the New Urbanism style typically include such traditional features as prominent front porches, backyard garages, multi-use buildings and housing clustered near commercial service areas. One of the major concepts behind New Urbanism is the idea of living in a small-town atmosphere, even when a community is located in a large, densely populated suburban area.

Niche

A niche is a small recessed area in the wall of a home, traditionally arched at the top.  Niches may be located inside a house or on a home´s exterior.  Inside a house, a niche is commonly used to display lighting, artwork, photographs, or candles.  An exterior niche is generally for aesthetic purposes only.  An extension of the definition of a niche as an architectural recess has led the term to be applied to other recess-types wall features, such as cracks, crevices, footholds, or hollows.

NIMBY (Not In My Back Yard)

The phrase "Not In My Back Yard," abbreviated NIMBY, is the response that is sometimes given by neighborhoods and communities to proposed changes or development.  Commonly, NIMBY is a reaction associated with undesirable land uses on property adjacent to residential communities, such as waste management facilities, prisons, water treatment plants, industrial facilities, and the like.  NIMBY is a reaction caused by fears of lack of safety, increased pollution or noise, and/or potential decrease in property values that may be associated with a particular development project.

No cash-out refinance

A no cash-out refinance is a refinancing scenario in which the amount of the new mortgage following refinancing is enough to cover any remaining balance of the first mortgage loan, as well as any applicable closing costs, liens, and cash in an amount of no more than 1 percent of the principal on the new loan.  No cash-out refinance mortgages often lower the monthly payments due by the loan borrower, and closing costs, financing costs, and any other relevant costs are able to be rolled into the new loan amount.

No-competition lots

No-competition lots are property lots in which the buyer's home will be constructed by a particular builder.  In other words, no competition exists among potential builders regarding who will be paid to do the work of building the home on the particular lot.  No-competition lots are usually purchased by a home buyer in areas where the available home sites have not yet been spoken for by a particular developer, in which case approved builders may be limited.  No-competition lots allow home buyers more flexibility to determine how and by whom their homes are to be constructed.

No-documentation loan

A no-documentation loan is a loan, the application for which does not require any verification of income on the part of the potential borrower.  No-documentation loans are typically granted in cases in which the borrower is unable to secure adequate documentation in a reasonable time.  However, no-documentation loans are most often available only in situations in which the borrower is able to make a large down payment, indicating that he or she has financial security and minimizing the risk of loan issuance.

Non-assumption clause

A non-assumption clause is a loan provision that prohibits the transfer of a mortgage from the original loan borrower to another borrower without the approval of the lending institution that issued the loan.  Non-assumption clauses are very common, and they provide assurance to a lender that the borrower to whom the lender issued a mortgage is the person who remains responsible for repayment of the loan.  In the event of a transfer of the mortgage, because a lender´s approval is required, even if the transfer is allowed the lender will be informed regarding who is responsible for payment of the balance of the loan and any interest due thereon.

Non-liquid asset

A non-liquid asset is an asset that is not easily turned into cash, such as a house or other real property.  Unlike liquid assets, which include cash or assets easily transferred to cash such as stocks or bonds, non-liquid assets require extra time and effort to convert their value into cash.  In the case of real estate, this time and effort is applied toward listing a home for sale and proceeding through all transaction requirements to the ultimate closing.  Other examples of non-liquid assets are personal property items such as cars or boats.

Non-recurring closing costs

Non-recurring closing costs are closing costs that are one-time only fees which, once paid for, cover in full a thing or service.  Non-recurring closing costs are paid one time for such items as an appraisal, loan points, credit report, title insurance, and a home inspection.   Many of these costs are included in a single fee charged at closing by the title company involved in the transaction or by the lending institution that issues the mortgage for the purchase of the property to the property purchaser.

Note

A note is a legal document that requires a borrower to repay a mortgage at a certain interest rate over a specified period of time.  A note acts as an instrument that uses the mortgage as proof of a debt; it also describes the specific terms and conditions subject to which the mortgage is to be repaid by the borrower, including the amount and frequency of installment payments, the interest rate applicable to the loan, the method of payment, any actions that may be taken against the borrower in the event of default or other non-conformity with the terms of the note, and the like.

Note rate

A note rate is the interest rate that is specified in a mortgage note, applicable to the mortgage of which the note is proof.  A note rate is usually specified as an annual percentage; the note rate percentage will change based on a variety of considerations.  Note rates offered in association with particular mortgages vary depending upon the lending institution that issues the loan; mortgage companies and other lenders often compete for borrowers´ business by undercutting the note rates offered by their competitors in the same geographical area.

Notice of default

A notice of default is the initial action conducted by a lending institution when a mortgage payment that is due from a borrower is late and any attempts to reconcile the issue without involving a court of law have failed.  A notice of default is filed, pursuant to the terms of a loan agreement between the lender and the borrower, with a court, informing the court that the borrower has defaulted on the loan and requesting the court to compel payment of the amount past due, as well as any associated late charges to accommodate the lender for its losses suffered by the lack of timely payment.