Mortgage Glossary
There are a lot of unfamiliar terms that get tossed around during the mortgage process. But don't worry, we've put together this glossary to help you get a better grasp of any terms that may be less than clear.
G
Grant
A technical term used in deeds of conveyance of property to indicate a transfer.
Grantee
The person to whom an interest in real property is conveyed.
Grantor
The person conveying an interest in real property.
Gross Domestic Product (GDP)
Measures aggregate economic activity available, encompassing every sector of the economy. Quarterly percent changes (at an annualized rate) in GDP reflect the growth rate of total economic output. GDP growth is widely followed as the primary indicator of the strength of economic activity. Frequency: quarterly. Source: Commerce Department.
Ground Rent
The amount of money that is paid for the use of land when title to a property is held as a lease hold estate rather than a fee simple estate.
Group Home
A residential building designed for unrelated, persons with special needs. These homes provide long-term shelter and support services that are residential in nature.
Growing Equity Mortgage (GEM)
A fixed-rate mortgage that involves scheduled payment increases over a specified period of time. The increase amount of the monthly payment is applied directly to the remaining principal balance.
Guarantee Mortgage
A home loan that is guaranteed by a third party.
H
Habendum Clause
The “to have and to hold” clause that defines the amount of the estate granted in the deed.
Half Bath
A half bathroom in a home that contains a wash sink and a toilet, but no bathtub or shower stall.
Hangout
The principal balance of a loan remaining when the term of the loan is beyond the term of a lease.
Hazard Insurance
Insurance that protects a homeowner against the cost of damages to property caused by fire, windstorms, and other common hazards. Also referred to as homeowner's insurance.
Home Equity Conversion Mortgage (HECM)
A special type of mortgage that enables seniors to convert the equity in their homes
Home Equity Line of Credit (HELOC)
A loan secured by real property, usually in a subordinate position, that allows the borrower to receive the loan proceeds in the form of multiple advances up to a limit that represents a maximum percentage of the borrower's equity in a property.
Home Equity Loan
A loan secured by a subordinate mortgage on one's principal residence, generally to be used for some non-housing expenditure. A traditional home equity loan provides lump-sum proceeds at the time the loan is closed.