Bad credit mortgage financing BCMF logo
Home Bad Credit Property Mortgage Theory Lending Practices Mortgage Financing Alternate Financing Creative Financing Consolidate Debt Repair Bad Credit Credit Cards Mortgage Lenders Mortgage Articles Real Estate Ebooks
Commercial Bank
Mutual Savings
Life Insurance
Mortgage Bankers
Municipal Bond
Other Lenders
Secondary Market
Mortgage Money
Variable Rate
Renegotiable Rate
Adjustable Rate
Shared Mortgage
Blended Rate
Loan BuyDowns
Growing Equity
Equity Mortgages
 Growing Equity

Growing Equity Financing Sources

The growing equity mortgage (GEM) combines the low initial payment of a 30 year mortgage loan with the lower interest rate obtainable for a much shorter term mortgage. In the GEM, the borrower agrees to raise his monthly payment by some fixed percentage each year over the life of the loan. The exact money generated by each payment after the initial year is applied entirely to principal. Thus, a growing equity mortgage calling for an annual increase in monthly payments of 3% would be completely paid out in approximately 15 years. It is a fixed-interest rate, adjustable-payment loan and is sometimes described as a fixed-rate-adjustable-mortgage.

Growing Equity Mortgage To Equity Mortgage