Current Mortgage Rates: Richmond, VA
2.750% (2.807% APR) 30yrs
2.125% (2.130% APR) 15yrs
as of 09/23/21
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Glossary of Mortgage Terms

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Term Main definition
Negative amortization
A rise in the loan balance when the mortgage payment is less than the interest due. Sometimes called "deferred interest.” Negative amortization arises most frequently on ARMs
Negative amortization cap
The maximum amount of negative amortization permitted on an ARM, usually expressed as a percentage of the original loan amount (e.g., 110%). Reaching the cap triggers an automatic increase in the payment, usually to the fully amortizing payment level, overriding any payment increase cap.
Negative Homeowners Equity
The condition of owing more on the house than the house is worth.
Net jumping
Using a broker's time and expertise to become informed and creditworthy, then jumping to the internet to get the loan.
Niche
See Market niche.
Nichification
Proliferation in the number of loan, borrower and property characteristics used by lenders to set mortgage prices and underwriting requirements.
No asset loan
A documentation requirement where the applicant's assets are not disclosed.
No change scenario
On an ARM, the assumption that the value of the index to which the rate is tied does not change from its initial level.
No income loan
A documentation requirement where the applicant's income is not disclosed.
No ratio loan
A documentation requirement where the applicant's income is disclosed and verified but not used in qualifying the borrower. The conventional maximum ratios of expense to income are not applied.
No-cost mortgage
A mortgage on which all settlement costs except per diem interest, escrows, homeowners insurance and transfer taxes are paid by the lender and/or the home seller.
Nominal interest rate
A quoted interest rate that is not adjusted for either intra-year compounding, or for inflation. A quoted rate of 6% on a mortgage, for example, is nominal Adjusted rates are called “effective”
Non-conforming mortgage
A mortgage that does not meet the purchase requirements of the two Federal agencies, Fannie Mae and Freddie Mac, because it is too large or for other reasons such as poor credit or inadequate documentation.
Non-Permanent resident alien
A non-citizen without a green card who is employed in the US. As distinct from a permanent resident alien, who has a green card and who lenders do not distinguish from US citizens. permanent resident aliens are subject to somewhat more restrictive qualification requirements than US citizens.
Non-warrantable condo
A condominium that does not meet meet lender requirements, see Warrantable condos.

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