Quickloans Glossary

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N

NEGATIVE AMORTIZATION
Occurs 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.

NET EFFECTIVE INCOME
The borrower's gross income minus federal income tax.

NON-ASSUMPTION CLAUSE
Statement in a loan contract forbidding the assumption of the loan without the prior approval of the lender.

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O

ORIGINATION FEE
Fee charged by lender to prepare loan documents, credit checks, etc.; usually computed as a percentage of face value of the loan.

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