G

Ginnie Mae

Nickname for the Government National Mortgage Association (GNMA). An agency that acts as a secondary market conduit for FHA and VA loans, guaranteeing payment to investors.

 

Good Faith Estimate

A written disclosure of costs provided by a lender to a prospective borrower.

H

Hazard Insurance

Also known as Homeowner's Insurance. Insurance on a property against fire and other natural disasters. This policy will typically combine personal liability insurance and fire insurance on the dwelling structure and its contents. Such a policy is generally required to obtain a loan.

 

Housing and Urban Development (HUD)

The federal government agency that oversees the FHA.

 

Housing Ratio

The ratio of the monthly housing payment to total gross monthly income. Also called Front End Ratio.

 

HUD 1

A closing document required by HUD that outlines the settlement cost of a loan. It contains itemized list of closing costs and is signed by the buyer and the seller.

I

Impound Account

An account held by a lender for payment of taxes, insurance or other related expenses.

 

Index

A published interest rate not controlled by the lender to which the interest rate on an Adjustable Rate Mortgage (ARM) is tied. The index and the interest rate linked to it may increase or decrease.

 

Insured Mortgage

A mortgage insured against loss to the mortgagee in the event of default.

 

Intermediate Term Mortgage

A mortgage loan with a contractual maturity at time of purchase equal to or less than 20 years.

 

Interest Rate

The percentage added to a loan that covers the lender's costs for supplying the money. This amount is part of an APR.

 

Interest Payment Notification

A federal tax form (1098) used to notify borrowers of the interest that they paid on their mortgage over the course of the year.

J

Joint Tenancy

An interest in property taken by two or more joint tenants.

 

Jumbo Mortgage

A loan above $322,700. These limits are set by the Federal National Mortgage Association and the Federal Home loan Mortgage Corporation. Because jumbo loans cannot be funded by these two agencies, they usually carry a higher interest rate.

 

Junior Mortgage

A mortgage subordinate to another mortgage. An example would be a second mortgage, which is subordinate to a first mortgage.

K

There are no Glossary Terms for K at this time.