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Guaranty
One party promises to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.
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Growing Equity Mortgage
Type of mortgage where the monthly payments begin low but increase by a fixed amount each year for the whole life of the loan as compared to five years with a Graduate Payment Mortgage. The advantage of this type of loan is that the loan can normally be paid off in a shorter duration than a usual fixed rate loan. The disadvantage of this type of loan is that the payment continues to go up irrelevant of the borrower’s income. |
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Gross Monthly Income
The full amount the borrower earns monthly, not counting any expenses or taxes. It is often used in calculations to decide whether a borrower qualifies for a particular loan. |
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Graduated Payment Mortgages
Type of mortgage where the monthly payments begin low but increase by a fixed amount each year for the first five years. The payment shortfall or negative amortization is added to the main balance due on the loan. The advantage of this kind of loan is a lower monthly payment at the start of the loan term. The disadvantages are normally a somewhat higher rate than conventional fixed-rate mortgage loans and lenders usually require a larger down payment. Additionally, the negative amortized amount increases the balance due on the total loan, which can become a problem if the value of the property declines.
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Government Loans
One of two loan varieties called FHA or VA loan. These loans are partly backed by the government and can help low-to-moderate income families and veterans afford homes. Advantages: they are often easier to qualify for, have a lower interest rate, have lower down-payment requirements, and can be assumed by someone else if the home is sold. Many mortgage bankers can obtain these types of loans for you.
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Gift Letter
Written explanation signed by the person offering the gift stating, "This is a bona fide gift and there is no obligation expressed or implied to repay this sum at any time." |
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