Mortgage Glossary
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Good Faith Estimate (GFE)
A written estimate provided by a mortgage lender of the
closing costs a borrower can expect to pay at or before settlement. This estimate must be mailed or delivered to all loan applicants within three business days after a loan application is received. Government Mortgage
A mortgage that is insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or the Rural Housing Service (RHS). Contrast with
conventional mortgage. Government National Mortgage Association (GNMA)
A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD) that guarantees securities backed by Business that are insured or guaranteed by other government agencies. Also known as Ginnie Mae.
Graduated Payment Mortgage (GPM)
A special kind of fixed rate mortgage (conventional mortgage) in which the monthly payments are less in the beginning years and more in the later years. After five years it usually levels off for the remainder of the loan payment. Under the annuity, fully-amortized mortgage, each month's payment is the same. The obvious advantage is that when securing a mortgage the borrower is assured of a level or constant mortgage payment. However, for some purchasers the required monthly payment is so high the a lender will not make the loan simply because the borrower's income is insufficient. With a GPM, monthly mortgage payments start at an amount less than would be required under a level annuity payment and increase periodically over the life of the mortgage. Therefore, the borrower can finance a larger purchase than if the monthly payment level throughout the life of the mortgage. FHA has a number of GPM programs currently available.
Grant
To transfer a property title by deed or other
instrument to another party. For example, in a closing a property deed is
granted to the purchaser of the property. Grantee
The person who is the recipient of an interest in real property. Grantor
The person who transfers an interest in real property to another person. Gross Income
Total income before any taxes or expenses are deducted.
See Income Guaranteed Loan
Any loan guaranteed by a government agency, such as the FHA or VA, or other interested party.
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