Glossary of Terms

Credit Glossary

It's hard enough trying to stay on top of your credit let alone learn the industry lingo. We've compiled a glossary of industry terms to help you stay ahead of the curve when dealing with your credit, auto loans, home loans, debt, and savings.

Garnishment

Legal process in which a creditor which has obtained a judgment on a debt may obtain full or partial payment by seizure of a portion of a debtor's assets (including wages, bank accounts, etc.)

Government National Mortgage Association (GNMA, "Ginnie Mae")

A government-owned corporation overseen by the U.S. Department of Housing and Urban Development, Ginnie Mae pools FHA-insured and VA-guaranteed loans to back securities for private investment. As with Fannie Mae and Freddie Mac, the investment income provides funding that may then be lent to eligible borrowers by lenders.

Good faith estimate

An estimate of all closing fees including pre-paid and escrow items as well as lender charges. Must be given to the borrower within three days after submission of a loan application.

Grace period

1. A period of days between the transaction date and the billing date when a transaction can be paid off without incurring an interest charge. Not all credit card agreements have a grace period.
2. The time period a debtor has to pay a bill in full and avoid interest charges.

Graduated Payment Mortgage (GPM)

A type of flexible-payment mortgage where the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.

Growing Equity Mortgage

A fixed-rate mortgage that provides scheduled payment increases over an established period of time. The increased amount of the monthly payment is applied directly toward reducing the remaining balance of the mortgage.

Guarantor

Person responsible for paying a bill.

Guaranty

A promise by one party to pay a debt or perform an obligation contracted by another if the original party fails to pay or perform according to a contract.

Calculators