Jargon Buster
Good-faith estimate
An estimate from an institutional lender that shows the
costs a borrower will incur, including loan-processing
charges and inspection fees.
Government-insured mortgage
Loans in which the government promises to make good on
the insured portion, should the borrow default on the
loan. Generally, government loans do not require large
down payments. They do, however, have strict eligibility
requirements.
Grace period
A specified amount of time to make a loan payment
after its due date without penalty.
Gross income
Your total income before tax and expenditures.
Ground rent
This applies only to leasehold properties and is
a sum paid annually to the freeholder by the leaseholder.
Guarantee mortgage
A loan guaranteed by a third party, such as a government
institution.
Guaranteed death benefit
Policies where the company will pay out a certain amount
when you die.
Guarantor
The guarantor is responsible for payments if you default.
If a lender is concerned about your ability to repay your
loan, they may require you to find a guarantor for the
loan.
