GIFT FUNDS
Money that a relative (or other third party) gives to a buyer who otherwise would not have enough cash to close the transaction.

GOOD FAITH DEPOSIT
A deposit that a prospective buyer gives a seller as evidence of his or her good faith intent to complete the transaction.  Also called an earnest money deposit. 

GRACE PERIOD:
The time a borrower is allowed after a payment is due to make that payment without incurring penalties.

GRADUATED PAYMENT MORTGAGE (GPM):
A land loan in which the periodic payments increase at a stated rate over a stated period of time before leveling off for the remainder of the term of the loan.

GRADUATION PERIOD:
The interval between increases in the payments on a GPM.

GRADUATION RATE:
The rate at which the payments increase in a GPM, expressed as a percentage.

GROSS INCOME:
A person's earnings from all sources in a given period before expenses are deducted.

GROSS MARGIN:
The difference between the interest rate chargeable on a variable or adjustable rate mortgage and the rate set by the index rate upon which the mortgage rate is based.

GROWING-EQUITY MORTGAGE (GEM):
A mortgage with a fixed interest rate which has periodic payments which increase at intervals, the added money per payment being applied directly to the outstanding principal on the mortgage.

GUARANTEE:
1. An enforceable warranty on the continuing usefulness of a product,
2. An agreement by a third party to a loan transaction to join in the transaction and to be held liable for the moneys secured by the loan instrument should the principal debtor fail to pay.

GUARANTEE MORTGAGE:
A land loan that has a third party added to provide added assurance that the obligations under the loan will be met.

GUARANTOR:
The person who signs a mortgage and assumes responsibility for it despite the fact that he receives no benefit from the loan.