Gap Insurance
A type of insurance that covers the amount of money owed on a lease that is not covered by standard auto insurance. Gap protection applies only if the lease is terminated involuntarily and earlier than maturity date of the lease because the leased auto was stolen or significantly damaged in an accident. It's important proection to have because the actual cash value of the car paid by your standard auto insurance policy may not be adequate to pay the payoff balance and early-termination penalties of the lease. The protection shouldn't cost you more than a few dollars a month.

General Warranty Deed
A deed which conveys not only all the grantor's interests in and title to the property to the grantee, but also warrants that if the title is defective or has a "cloud" on it (such as mortgage claims, tax liens, title claims, judgments, or mechanic's liens against it) the grantee may hold the grantor liable.

Ginnie Mae
Provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.. Also referred to as Government National Mortgage Association.

Government National Mortgage Association (GNMA)
Also known as Ginnie Mae, provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA..

Grace Period
The amount of time after a payment due date when no interest is charged. You will frequently see grace periods of 20 to 30 days offered by certain credit card issuers. Credit card grace periods only apply if a cardholders previous month's balance was paid in full.

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.

Grantee
That party in the deed who is the buyer or recipient.

Grantor
That party in the deed who is the seller or giver.

Gross Monthly Income
The total amount the borrower earns per month, before any expenses are deducted.

Gross Salary
The total amount of salary earned before taxes and other deductions are made. Different than net pay or take home pay, which is the amount of salary after taxes and other deductions are taken. Lenders look at your gross and net pay to help decide how much money to lend you.

Guarantee
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.

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