We hope this Glossary of Mortgage and Real Estate Terms helps you understand the home buying and financing process. Should you have any further questions, please do not hesitate to contact your Loan Officer for answers.

Additional Terms: # A B C D E F G H I J K L M N O P Q R S T U V W XYZ

G Terms

GAAP: See Generally Accepted Accounting Principals.

 

Gable Roof: A roof in the shape of a triangle, with the ridge forming an angle at the top and each eave forming an angle at the edge of the roof

 

Gain: An increase in money or property value.  See capital gain, realized gain,  and recognized gain.

 

Gambrel Roof: A roof having two slopes on two sides with a steeper lower slope than the upper, flatter sections.

 

Garden Apartments: A housing complex whereby some or all tenants have access to a lawn area.

 

Garnishment: A legal proceeding in which a person's money or wages are taken for payment of a debt. The amount that may be taken is set by statute (usually as a percentage) and, in most states; a judgment is necessary before garnishment.

 

GEM: See Growing Equity Mortgage.

 

General Contractor: One who constructs a building or other improvement for the owner or developer. May retain a construction labor force or use subcontractors.  Also see contractor.

 

General Lien: A lien that includes all of the property owned by the debtor, rather than a specific property.

 

General Partner: A partner whose liability is not limited. All partners in an ordinary partnership are general partners.  A limited partnership must have at least one general partner.

 

General Warranty Deed: A deed in which the grantor agrees to protect the grantee against any other claim to title of the property and provides other promises. Also see warranty deed, deed. 

 

Generally Accepted Accounting Principals: An accounting method used by insurance companies to report their financial information.  A standard of accounting principals.

 

Gentrification: The displacement of lower-income residents by higher-income residents in a neighborhood. Generally occurs when an older neighborhood is rehabilitated or revitalized.

 

Gift Deed: A deed for which consideration is love and affection, and no material consideration is involved.

 

Gift Letter: A letter or affidavit that indicates that part of a borrower's down payment is supplied by relatives or friends in the form of a gift and that the gift does not have to be repaid.

 

Gift Tax: Federal tax upon a monetary gift to a relative or friend. Generally, each person may give up to $10,000 per year to each donee without imposition of a federal gift tax. On higher gifts, there may be a gift tax, or the gift may affect the donor's estate tax.

 

GI Loan: Same as VA loan. 

 

Ginnie Mae: See Government National Mortgage Association.

 

GNMA: See Government National Mortgage Association.

 

Good Faith: An act done honestly. 

 

Good Faith Estimate: Provides a breakdown of the estimated closing charges.  A RESPA requirement.

 

Goodwill: A business asset of intangible value created by customer and supplier relations. 

 

Government National Mortgage Association: A government corporation within the Department of Housing and Urban Development (HUD) that provides assistance for the purchase of certain Federal Housing Administration (FHA) and Veterans Administration (VA) mortgages and guarantees securities backed by pools of mortgage loans.

 

Government Rectangular Survey:  A rectangular (grid) system of land survey that divides a district into 24-square mile quadrangles (cells) from the meridian (north-south line) and the base line (east-west line); the tracts are divided into 6-mile-square parts (smaller cells) called townships, which are in turn divided into 36 tracts of 1 mile square called sections.  

 

GPM: See Graduated Payment Mortgage.

 

Grace Period:  The period during which one party may fail to per form without being considered in default.  Mortgages normally have a 15 day grace period where it is due on the first, but not late until the 15th.

 

Grade: 1. Ground level at the foundation. 2. To prepare a smooth surface on a site.

 

Grade Lease: Same as graduated lease.

 

Gradient: The slope, or rate of increase or decrease in the elevation of a surface; usually expressed as a percentage: Gradient = vertical rise / horizontal distance.

 

Graduate Realtors® Institute(GRI): An educational program and certification sponsored by the National Association of Realtors® or State Boards. 

 

Graduated Lease: A lease that provides for graduated changes, at stated intervals, in the amount of rent.

 

Graduated Payment Mortgage (GRM): A mortgage requiring lower payments (Graduated Payments) in early years (Gradated Payment Period) than in later years. Payments increase in steps each year until the installments are sufficient to amortize the loan.

 

Graduated Payment Period: The time frame during which a borrower's monthly payments cover only part of the actual amount needed to amortize the loan, with the payment obligation increasing annually. This time period and the specific payment amounts may result in negative amortization if there is no pledged account to supplement the borrower's payment.

 

Graduated Payments: The amount a borrower pays initially covers only part of the actual amount needed to amortize the loan. Payments increase annually during the first few years of the loan and then ultimately level off. Such payments may result in negative amortization if there is no pledged account to supplement the borrower's payment.

 

Grandfather Clause: When a law is changed or a new law is passed, those whose specific activity was legal under the previous law are often allowed to continue, by virtue of this provision.

 

Grant: A technical term used in deeds of conveyance of property indicate a transfer. 

 

Grantee: The party to whom the title to real property is conveyed. The buyer.

 

Grantor: Anyone who gives a deed. The Seller.

 

G.R.I.:  Graduate of the Realtors® Institute, which is affiliated with the National Association of Realtors®. See Graduate Realtors Institute.

 

Gross Area: The total floor area of a building, usually measured from its outside walls.

 

Gross Income: 1. The total income from property, business, or self-employed borrower before any expenses.   

 

Gross Income Multiplier (GIM): Same as gross rent multiplier (GRM)

 

Gross Profit Ratio: In an installment sale, the relationship between the gross profit (gain) and the contract price. The resulting percentage is applied to periodic receipts from the buyer to determine the taxable gain from each receipt.

 

Gross Rent Multiplier (GRM): The sales price divided by the contract rental rate.  GRM may also be expressed as the number of years of rent equaling the purchase price.

 

Ground Lease: One that rents the land only. 

 

Ground Rent: The rent earned by leased land. 

 

Growing Equity Mortgage: A mortgage loan in with the additional payment amount applied to principal retirement. As a result of the additional payment amount is applied to the principal.  As a result of the additional principal payment, the maturity of the loan is significantly shorter than a comparable level payment mortgage.

 

Guaranty: An assurance provided by a party that another party will perform under a contract.

 

Guaranteed Loan: When a government agency or other party guarantees a loan, it agrees to reimburse the lender if the borrower fails to pay back the loan as promised. A loan can be guaranteed for all or a portion of the unpaid principal. An example is a Veterans Administration (VA) loan to a veteran or FHA insured loan.

 

Guardian : One appointed by a court to administer the personal affairs or property of an individual who is not capable of handling their affairs.