Glossary of Terms
Credit Glossary
It's hard enough trying to stay on top of your credit let alone learn the industry lingo. We've compiled a glossary of industry terms to help you stay ahead of the curve when dealing with your credit, auto loans, home loans, debt, and savings.
- Negative amortization
- When a borrower's monthly payments are not large enough to pay all the interest due on the loan. This unpaid interest is then added to the unpaid balance of the loan. The home buyer ends up owing more than the original amount of the loan. See also Recast, Option ARM.
- 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.
- Notice of Results
- If a consumer's dispute request with a credit reporting agency (credit bureau) results in information being deleted or updated, the consumer may request the credit agency send the corrected information to eligible credit grantors and employers who reviewed the incorrect information. The credit reporting agency must also send the consumer an updated copy of their personal credit report, showing the information has been deleted or updated.
