Real Estate Glossary

G

Ginnie Mae (GNMA)
A governmental agency chartered for the purpose of facilitating capital formation for FHA and VA mortgage loans. GNMA guarantees the timely principal and interest payments to investors.

Good Faith Estimate
A disclosure required pursuant to the Real Estate Settlement Procedures Act to be made by lenders to borrowers within three days of loan application. The good faith estimate provides an estimate of various settlement costs to be incurred by the borrower in association with the loan applied for.

Graduated Payment Mortgage (GPM)
A type of flexible-payment mortgage wherein payments begin at a low level and increase over time based on a predetermined schedule. Most GPMs provide for scheduled negative amortization.

Grandfather Clause
The clause in a law permitting the continuation of a use, business, etc., which was once permissible but, not permissible now, due to a change in the law.

Grantee
The person or entity to who interest is conveyed in a legally binding transaction.

Grantor
The person or entity conveying interest in a legally binding transaction.

Gross Income
Total income before expenses are deducted. Generally refers to an individual's income before deductions for income taxes and social security, etc.