"Growing-Equity" Mortgages
A growing equity mortgage
is a type of
graduated
payment mortgage .
Unlike an adjustable rate mortgage, a graduated payment mortgage has
a fixed payment schedule, so the additional principal payments
reduce the duration of the mortgage. The additional payments
avoid
the negative amortization, and the
payments decrease while the term
of the loan remains constant. The monthly payments for the growing
equity mortgage increase annually. It is the increased amount that
is used to reduce the principal balance and shorten the term of the
loan. This is a great choice for a borrower who is looking to
build
equity.
Call and speak
with us today and one of our Loan Professionals can guide you toward
the best loan option for your needs.
