Learning Center Glossary
| Term | Definition |
|---|---|
| Gift Funds | Money given to a buyer, by a relative or approved nonprofit organization, for the purpose of covering the costs to purchase a property. |
| Gift letter | A document in which a donor states that money given to a prospective borrower is not a loan and does not have to be repaid. |
| Ginnie Mae | Also known as GNMA (Government National Mortgage Association), provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA. |
| Good Faith Estimate | An estimate from an institutional lender that outlines the costs a borrower will incur during the process of buying a home. |
| 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. |
| Gross Monthly Income | An individual's income before income taxes have been deducted. |
| Gross Rent Multiplier (GRM) | A figure used to estimate the value of residential rental property, determined by dividing the sales price by the monthly rental income. |
| Growing Equity Mortgage (GEM) | A fixed rate loan with annual payment increases that are used to reduce the principal balance, so that the loan is paid off much more quickly than it would be with ordinary level payments. |