Mortgage and Real Estate Terms – G

GOOD FAITH ESTIMATE (GFE) – a written estimate which you sign, that the lender/loan agent must present to you within three days of when they receive your consumer residential real property loan application credit package. It is a government required document and must contain a detailed itemization of what the lender/loan agent proposes to charge you in your home financing transaction. Although it is not the “final word”, it must be the lender/loan agent’s “best estimate” of the proposed transaction they think you’ll qualify for, at this early stage in the process. As you’ll see, a great deal of the “costs” are paid out to various non-affiliated outside vendors and suppliers to the transaction. This document (the GFE), is where they’re detailed for you, early enough in the process for you to understand, compare and comment on.

GRACE PERIOD – a period of time (usually measured in days) after an obligation is due during which a borrower can perform without incurring a penalty and without being considered in default.

GRADUATED PAYMENT MORTGAGE (GPM) – a type of flexible payment mortgage where the payments increase for a specific period of time, and then level off. Usually results in negative amortization.

GRANTEE – the person to whom an interest in real property is conveyed.

GRANTOR – the person conveying an interest in real property.

GROSS LIVING AREA – the total floor area of a building measured from the outside of the exterior wall.

GROSS INCOME – total income produced by a rental type piece of real property, before expenses are deducted. Contact ForTheBestRate.com for more investment property mortgage information.

GROSS RENT MULTIPLIER – a figure used to compare rental properties. It is derived from the relationship between gross rental income and sales price.

GROWING EQUITY MORTGAGE (GEM) – a graduated payment mortgage in which increases in a borrower’s mortgage payments are used to accelerate reduction of principal on the mortgage. Due to increased payments, the borrower acquires equity more rapidly and retires the debt earlier.