Mortgage Terminology

General Contractor

A general contractor is someone whom you may work closely with during your home improvement project. The general contractor is the person who oversees the construction project and handles various aspects such as scheduling workers and ordering supplies. If you are borrowing mortgage funds to renovate a home, your lender may need to review whether your contractor meets all federal, state, and local registration, licensing and certification standards.

Gift

This includes amounts from a relative or a grant from the borrower's employer, a municipality, non-profit religious organization, or non-profit community organization that does not have to be repaid.

Ginnie Mae

Nickname for Government National Mortgage Association (GNMA).

Good Faith Estimate

The good-faith estimate is a report from your lender that outlines the costs you will incur to get your mortgage. It is based on the lender's typical loan origination costs for the area where your home is located. The estimate usually changes between application and closing, so you'll want to review your settlement form before the closing meeting. The settlement form will list the actual amount of money you'll need to bring to closing. You'll need to pay your closing costs in the form of a certified or cashier's check because personal checks usually are not accepted.

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 mortage.

Government National Mortgage Association

A government-owned corporation within the U.S. Department of Housing and Urban Development (HUD). Created by Congress on September 1, 1968, GNMA assumed responsibility for the special assistance loan program formerly administered by Fannie Mae. Popularly known as Ginnie Mae.

Garnishment

A notice to an employer or other asset holder that monies, wages, or property of a debtor must be applied to a specific debt or creditor.

General Contractor

A party that performs or supervises the construction or development of a property pursuant to the terms of a primary contract with the owner. The general contractor may use its own employees for this work or the services of other contractors (subcontractors).

GI Loan

Old nickname for a VA guaranteed mortgage loan.

Government Mortgages

Mortgages insured or guaranteed by the government (FHA, VA, RHS, or State Bond Agencies).

Grace Period

A period of time (usually 15 days) after a mortgage payment is due in which the lender will not charge a late penalty or report the payment as late.

Graduated Payment Mortgage (GPM)

A fixed-interest loan with lower payments in the early years than the later years. The amount of the payment gradually increases over a period of time and then levels off at a payment sufficient to pay off the loan over the remaining amortization period.

Grantee

The person to whom an interest in real property is conveyed.

Grantor

The person conveying an interest in real property.

Green Card

Immigration status which permits the holder to work in the United States, obtain a social security number and become an apprentice to attain citizenship.

Grievance Day

A day set by taxing authorities and their agents for hearing protests on assessed valuations of real property.

Gross Monthly Income

A person's income before deductions for taxes, medical insurance, etc. After deductions, the income is referred to as take home pay or net income.

Ground Rent

The amount of money that is paid for the use of land when title to a property is held as a leasehold estate rather than as a fee simple estate.

Group Home

A single-family residential structure designed or adapted for occupancy by unrelated developmentally disabled persons. The structure provides long-term housing and support services that are residential in nature.

Growing-Equity Mortgage (GEM)

A fixed-rate mortgage that provides scheduled payment increases over an established period of time, with the increased amount of the monthly payment applied directly toward reducing the remaining balance of the mortgage.

Guarantee Mortgage

A mortgage that is guaranteed by a third party.

Guaranteed Loan

A loan guaranteed by a government agency or any other interested party.