General Warranty Deed - A deed which conveys not only all the grantor's interests in and title to the property to the grantee, but also warrants that if the title is defective or has a "cloud" on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the grantee may hold the grantor liable.
Ginnie Mae - See Government National Mortgage Association.
Government National Mortgage Association (GNMA) - Also known as Ginnie Mae, provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.
Graduated Payment Mortgage (GPM) - A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.
Grantee - That party in the deed who is the buyer or recipient.
Grantor - That party in the deed who is the seller or giver.
Gross Monthly Income - The total amount the borrower earns per month, before any expenses are deducted.
Guarantee - A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.
Hazard Insurance - A form of insurance in which the insurance company protects the insured from specified losses, such as fire, windstorm and the like.
Home Equity Line of Credit - A form of open end credit in which the home serves as collateral.
Housing Expenses-to-Income Ratio - The ratio, expressed as a percentage, which results when a borrower's housing expenses are divided by his/her net effective income (FHA/VA loans) or gross monthly income (Conventional loans).
HUD - U.S. Department of Housing and Urban Development. Office of Housing/Federal Housing Administration within HUD insures home mortgage loans made by lenders and sets minimum standards for such homes.
Impound - That portion of a borrower's monthly payments held by the lender or service to pay for taxes, hazard insurance, mortgage insurance, lease payments, and other items as they become due. Also known as reserves.
Index - A published interest rate against which lenders measure the difference between the current interest rate on an adjustable rate mortgage and that earned by other investments (such as one- three-, and five-year U.S. Treasury Security yields, the monthly average interest rate on loans closed by savings and loan institutions, and the monthly average Costs-of-Funds incurred by savings and loans), which is then used to adjust the interest rate on an adjustable mortgage up or down.
Interest - A charge paid for borrowing money.
Interest Rate - The annual rate of interest on the loan, expressed as a percentage of 100.
Investor - Money source for a lender.
Jumbo Loan - A loan which is larger (more than $203,150) than the limits set by the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.
Late Payment - A payment made later than agreed upon in a credit contract and on which additional charges may be imposed.
Lessee - A person who signs a lease to get temporary use of property.
Lessor - A company that provides temporary use of property usually in return for periodic payment.
Liability on an Account - Legal responsibility to repay debt.
Lien - A claim upon a piece of property for the payment or satisfaction of a debt or obligation.
Loan-To-Value Ratio - The relationship between the amount of the mortgage loan and the appraised value of the property expressed as a percentage.
Lock Term - A lender's guarantee of an interest rate for a set period of time. The time period is usually that between loan application approval and loan closing. The lock-in protects you against rate increases during that time.
