GLOSSARY

This glossary is Alphabetical please choose your letter below.

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

 

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.