A graduated payment mortgage in which increases in a borrower's mortgage payments are used to accelerate reduction of principal on the mortgage. Due to increased payments, the borrower acquires equity more rapidly and retires the debt earlier.
Mortgage which has a fixed interest rate and increasing monthly payments.
A fixed-rate mortgage that has varying monthly payments. Principal and interest payments may rise monthly, semi-annually or yearly, depending on the payment schedule agreed upon. Any extra payments reduce the loan principal and the loan term.
A type of loan that rapidly increases the equity in a property by increasing the monthly payments a certain percentage each year and applying those increases to the principal. Glossary A - D Glossary H - L
A type of mortgage where the monthly payments start low but increase by a fixed amount each year for the entire life of the loan as compared to five years with a Graduate Payment Mortgage. The advantage of this type of loan is that the loan can usually be paid off in a short duration than a traditional fixed rate loan. This disadvantage of this loan is that the payment continues to go up irrelevant of the income of the borrower.
A rarely used type of mortgage where the payments increase according to set a schedule. The purpose is to pay additional money into the principal in order to pay off the loan earlier, and save interest charges.
A fixed rate, graduated payment loan allowing low beginning payments and a shorter term because of higher payments as the loan progress. Based on the theory of increasing income by the buyer and, therefore ability to make higher future payments.
Loan with fixed interest rate and scheduled annual increases in monthly payments, resulting in shorter maturity.
Repayment plan for a mortgage in which the size of payments gradually increases, with all the increase applied to capital.
A type of mortgage where payments increase yearly and each increase is directly applied against the mortgage principal. This allows the borrower to increase their equity quickly and pay off the mortgage sooner.
A mortgage loan in which the monthly payments increase by a specific amount each year with the increase applied to the principal.
Mortgage with a fixed interest rate and payments that increase throughout the term of the mortgage.
Similar to the Graduated Payment Mortgage, but for a shorter term, usually 15 years.
(GEM) A loan in which the normal payment is increased each year so that the amortization is accelerated, thus paying off the mortgage in a shorter period of time. For more information, see the "Loan Programs" section.
A fixed-rate loan in which payments increase by some predetermined amount each year, which reduces the outstanding balance of the loan. This accelerated payment plan allows repayment of a 30-year loan in 15 to 20 years.
A loan allowing a borrower to accelerate its satisfaction by making additional monthly principal payments.
A fixed-rate, fixed-schedule loan which starts with the same payments as a level payment loan; the payments rise annually, with the entire increase being used to reduce the outstanding balance. No negative amortization occurs, and the increase in payments may enable the borrower to pay off a 30-year loan in 15 to 20 years, or less.
This mortgage is designed for home buyers who desire to pay off their loan early. Payments are scheduled to increase by a specific amount each month, causing principal to decrease more rapidly than would occur with fixed payments.
a fixed rate mortgage with a schedule of payment increases to accelerate payoff.
The Gem has a fixed rate for the life of the loan; but payments increase 3 percent, 5 percent, or 7.5 percent (depending on the program) for a period during the loan (usually not to exceed ten years), with all payment increases applied directly to reduce the principal. Thirty-year amortized GEM loan typically pay off between 13 and 15 years.
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.
(GEM) A fixed rate, graduated payment mortgage with small initial payments that increase each year so that the loan pays off in a shortened term, usually 15 years.
Payments made by the borrower increase in specified steps which, results in a rapid payback.
A fixed-rate mortgage that involves scheduled payment increases over a specified period of time. The increase amount of the monthly payment is applied directly to the remaining principal balance.