Definitions for "Graduated-payment mortgage"
A rare bird these days, the graduated-payment mortgage gives you the opportunity to cut your total interest costs. With a graduated-payment mortgage, your monthly payments are increased by a predetermined formula (for example, a 3 percent increase each year for seven years, after which time payments no longer fluctuate). If you expect to land a job that may allow you to make these higher payments, you may want to consider this option.
A mortgage that starts with low monthly payments and is increased at a predetermined rate.
Fixed-interest rate loan on which the scheduled monthly payments start low, but rise later, then level off. Usually involves negative amortization.