Glossary – G

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G

Ginnie Mae
see 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.

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.

Gross income
Net sales less cost of goods sold. Installment loan: Loan type that is paid in periodic payments, such as an automobile loan.

Gross National Product (GNP)
The Gross National Product is the broadest measure of the nation’s production. It measures the market value of all newly produced goods and services in the United States. When GNP is down, it shows a slowing down in the economy. To counteract this, the Federal Reserve may loosen money by lowering interest rates. Bond Market Moves Up In Price.

Gross profit
Indicates the revenues of the firm before consideration of its operating expenses. Net sales less cost of goods sold. Gross profit margin: Measures a firm’s profitability. Gross profits divided by net sales.

Gross National Product (GNP)
The Gross National Product is the broadest measure of the nation’s production. It measures the market value of all newly produced goods and services in the United States. When GNP is down, it shows a slowing down in the economy. To counteract this, the Federal Reserve may loosen money by lowering interest rates. Bond Market Moves Up In Price.

Growing-Equity Mortgage (GEM)
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.

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.

Guarantee Mortgage
A mortgage that is guaranteed by a third party.

Guideline Lease
A lease written under criteria established by the IRS to determine the availability of tax benefits to the lessor.