MORTGAGE DICTIONARY

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GI LOAN:
Also known as "VA loan".

GINNIE MAC (GNMA): Government National Mortgage Association. Assistance in obtaining purchase mortgages.

GOOD FAITH ESTIMATE: A written statement of the anticipated costs of completing a loan transaction which must be provided by a lender to a borrower within 72 hours of the submission of the loan application.

GRACE PERIOD:
The time a borrower is allowed after a payment is due to make that payment without incurring penalties.

GRADUATED PAYMENT MORTGAGE (GPM):
A land loan in which the periodic payments increase at a stated rate over a stated period of time before levelling off for the remainder of the term of the loan.

GRADUATION PERIOD:
The interval between increases in the payments on a GPM.

GRADUATION RATE:
The rate at which the payments increase in a GPM, expressed as a percentage.

GROSS INCOME:
A person's earnings from all sources in a given period before expenses are deducted.

GROSS MARGIN:
The difference between the interest rate chargeable on a variable or adjustable rate mortgage and the rate set by the index rate upon which the mortgage rate is based.

GROWING-EQUITY MORTGAGE (GEM):
A mortgage with a fixed interest rate which has periodic payments which increase at intervals, the added money per payment being applied directly to the outstanding principal on the mortgage.

GUARANTEE:
1. An enforceable warranty on the continuing usefulness of a product,
2. An agreement by a third party to a loan transaction to join in the transaction and to be held liable for the moneys secured by the loan instrument should the principal debtor fail to pay.

GUARANTEE MORTGAGE:
A land loan that has a third party added to provide added assurance that the obligations under the loan will be met.

GUARANTY FEE:
Fannie Mae's fee for insuring a mortgage