Glossary of Mortgage Terms
G
- Generic Prices
- Prices that assume a more or less standardized set of transaction characteristics that generally command the lowest prices. Generic prices are distinguished from transaction specific prices, which pertain to the characteristics of a specific transaction.
- Gift of Equity
- A sale price below market value, where the difference is a gift from the sellers to the buyers. Such gifts are usually between family members. Lenders may allow the gift to count as down payment.
- Gift Letter
- A written explanation signed by the individual giving the gift stating, "This is a bona fide gift and there is no obligation expressed or implied to repay this sum at any time."
- Ginnie Mae
- Government National Mortgage Association ( GNMA ); a government-owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment; as With Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders.
- Global Debt Facility
- A debt issuance facility through which U.S. dollar and foreign currency debt securities may be offered to investors worldwide with the feature of clearing and settlement through a variety of clearing systems.
- Good Faith Estimate ( GFE )
- An estimate of all closing fees including pre-paid and escrow items as well as lender charges; must be given to the borrower within three days after submission of a loan application.
- Government National Mortgage Association (GNMA)
- Also known as "Ginnie Mae", provides sources of funds for residential mortgage, insured or guaranteed by FHA or VA.
- Grace Period
- The period after the payment due date during which the borrower can pay without being charged for late fees.
- Graduated Payment Mortgage ( GPM )
- A type of flexible-payment where the payments increase for a specified period of time and then level off. This type of mortgage may have negative amortization built into it.
- Graduation Period
- The interval at which the payment rises on a GPM.
- Graduation Rate
- The percentage increase in the payment on a GPM.
- Gross Income
- Total income produced by a property before any expenses are deducted.
- Gross Monthly Income
- Total monthly income earned before tax and other deductions.
- Guaranteed Mortgage Price Agreement
- A proposal by HUD to allow lenders and others to offer packages of loans and settlement services at a single price.
- Guaranty
- A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.
- Guaranty Fee
- Compensation paid by a lender to Fannie Mae for the guarantee of timely payments of principal and interest to MBS security holders.