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Home Offers USA >> Glossary >> Glossary - G

We Buy Houses Glossary - G

Ginnie Mae
Government National Mortgage Association (GNMA) is 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 pay back securities for private investment. The Fannie Mae and Freddie Mac offer the investment income that provides funding which may be lent to eligible borrowers by lenders. It also provides sources of funds for residential mortgages, insured or guaranteed by FHA or VA.

Guaranty
It’s a promise made by one party to pay a debt or execute an obligation contracted by another if the original party fails to pay or execute according to a contract. It’s an obligation contracted by another if the original party fails to pay or perform in accordance to a contract.

Grace Period
It’s the amount of time after a payment due date when no interest is charged. The time allowed, usually 15 days, for making late payments without a penalty. There will often perceive grace periods of 20 to 30 days presented by certain credit card issuers. Credit card grace periods only apply if a cardholders previous month's balance were paid in full.

 

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