Gift of Equity
A below market value sale price on a property, whereby the difference is gifted from the sellers to the buyers. These gifts are usually transacted between family members. Often, Lenders will allow the gift to act as the down payment..
Good Faith Estimate
The form listing the settlement charges or closing costs the borrower must pay at closing. These mortgage fees cover every expense associated with a home loan, including inspections, title insurance, taxes and other charges. The lender is obligated to provide the borrower a GFE within three business days of receiving the loan application.
Government National Mortgage Association (GNMA)
A Federal agency guaranteeing mortgage securities issued against pools of FHA and VA mortgages.
The period following the payment due date during which, the borrower can still pay without incurring late fees. This only applies in mortgage cases where interest is calculated monthly. A grace period is not applicable in cases of simple interest mortgages because the interest accrues daily, not monthly.
Graduated Payment Mortgage (GPM)
A mortgage on which the mortgage payment rises incrementally by a constant percent for a specified number of periods, after which it levels out over the remaining term to fully amortize.
The interval on a GPM at which, the payment increases.
The increase in percentage on the payment of a GPM.
Guaranteed Mortgage Price Agreement
A proposal initiated in 2002 by HUD allowing lenders and others to offer loan and settlement services packages at a single price.