G-H

Good Faith Estimate (GFE)
A disclosure that lenders must by law issue to mortgage applicants within three business days of their loan application date. The three-page GFE lists settlement charges and the terms of the mortgage.
Grace Period
The amount of time after a payment due date when no interest is charged. Grace periods of 20 to 30 days are common with many credit card issuers. Credit card grace periods only apply if a cardholder’s previous month’s balance was paid in full. Grace periods do not generally apply to cash advances.
Guaranteed Business Loans
In lending, to “guarantee” something means that a third-party guarantor will assume the debt obligation of a borrower if the borrower defaults on (does not pay back) the loan.
HARP Program
The Home Affordable Refinance Program (HARP) was created by the federal government in April of 2009 to allow eligible homeowners with little home equity, no home equity or even negative home equity to refinance to lower mortgage rates. The program is set to expire on December 31, 2015.
Home Equity
Home equity is the difference between the market value of a home and any outstanding mortgage balance(s). A homeowner with a $200,000 property and a $150,000 mortgage balance has $50,000 in home equity.
Home Equity Conversion Mortgage (HECM)
The most popular reverse mortgage program in the US. It’s administered by HUD and is also referred to as an FHA reverse mortgage. Reverse mortgages allow homeowners 62 and over to convert some of their home equity to cash, but they are not required to repay the loan until they move out, sell the property or die.
Home Equity Line Of Credit
A home equity line of credit (HELOC) is a type of secondary financing that consists of a revolving line of credit secured by a lien junior to a mortgage.
Home Equity Loan
A home equity loan is also called a second mortgage. It allows the homeowner to borrow against home equity (which is the difference between the property value and the mortgage balance(s) against it). The home equity loan delivers a lump sum at closing and is repaid in monthly installments. Most home equity loans have fixed rates, but some are adjustable.

Leave a Comment

Your email address will not be published. Required fields are marked *

Back to Top