Mortgage Glossary

Negative Amortization

An increase in the balance of a loan caused by adding unpaid interest to the loan balance; this occurs when the payment does not cover the interest due.

Net Worth

The value of a company or individual's assets, including cash, less total liabilities.

Nonliquid Asset

An asset that cannot easily be converted into cash.

Note

A written promise to pay a specified amount under the agreed upon conditions.

Note Rate

The interest rate stated on a mortgage note, or other loan agreement.