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.
Mortgage starting with low monthly payments that increase at a predetermined rate for a specified time.
A type of stepped-payment loan in which the borrower's payments are initially lower than those on a comparable level-rate mortgage. The payments gradually increase over a predetermined period (usually 3, 5, or 7 years), and then are fixed at a level-pay schedule, which will be higher than the level-pay amortization of a level-pay mortgage originated at the same time. The difference between what the borrower actually pays and the amount required to fully amortize the mortgage is added to the unpaid principal balance.
A type of flexible-payment mortgage in which the payments increase for a specified period of time and then level off. This type of mortgage has negative amortization built into it.
A type of flexible-payment mortgage that starts out with low payments, which gradually become larger over the term of the loan and then level off. This type of mortgage has negative amortization built into it.
A home loan that starts out with smaller payments that gradually increase over the first few years, then remain fixed.
A loan in which the monthly principal and interest payments increase by a certain percentage each year for a certain number of years and then level off for the remaining loan term.
This mortgage offers low initial monthly payments that increase at a predetermined rate and then cap at a final level for the duration of the mortgage.
Type of residential home loan whereby payments begin low and, gradually over time, increase until, eventually, they reach a plateau and level out to a fixed payment rate.
A mortgage that requires a borrower to make larger monthly payments over the term of the loan. The payment is unusually low for the first few years but gradually rises until year three or five, then remains fixed.
A mortgage which starts with a low monthly payments that increase at a pre-determined rate for a specified time. The initial monthly payments are set at an amount lower than that required for full amortization of the debt.
A rare loan specifying monthly payments that increase by a predetermined formula (for example, a 3-percent increase each year for seven years, after which time payments no longer fluctuate).
A mortgage requiring lower payments in early years than in later years. Payments increase in step each year until the installments are sufficient to amortize the loan.
Mortgage where the monthly payments are low for the first few years, gradually rise for a few years and then remain fixed.
A flexible-payment mortgage with monthly principal and interest payments that increase by a certain percentage each year for a certain number of years, and then level off for the remainder of the term
