Graduated Payment Mortgages

Graduated Payment Mortgages are loans in which mortgage payments increase annually for a predetermined period of time (e.g. five or ten years) and becomes fixed for the remaining duration of the loan.

(View Glossary of Mortgage Terms Here)

A graduated payment mortgage is a loan where the payment increases each year for a predetermined amount of time (such as 5 or 10 years), then becomes fixed for the remaining duration of the loan.

When interest rates are high, borrowers can use a graduated payment mortgage to increase their chances of qualifying for the loan because the initial payment is less. The downside of opting for an smaller initial payment is that the interest owed increases and the payment shortfall from the initial years of the loan is then added on to the loan, potentially leading to a situation called "negative amortization." Negative amortization occurs when the loan payment for any period is less than the interest charged over that period, resulting in an increase in the outstanding balance of the loan.

Need more details? Contact us

We are here to assist. Contact us by phone, email or via our social media channels.

  • Black Facebook Icon
About Us

We've been helping customers afford the home of their dreams for many years and we love what we do.

Company NMLS: 2744
www.nmlsconsumeraccess.org

Contact Us

1331 Silas Deane Highway
Wethersfield, Connecticut 06109

250 State Street, Unit F1
North Haven, CT 06473


Phone: (203) 859-8124 

*Not for use by New York Borrowers
info@welcomehomemortgage.net

Locations in Wethersfield & North Haven, CT. Licensed in Florida.

We are proud to be a mortgage broker and not a lender or correspondent lender.  This site is not authorized by the New York State Department of Financial Services. No mortgage solicitation activity or loan applications for properties located in the State of New York can be facilitated through this site.

 

© 2020 Welcome Home Mortgage, LLC

 

Designed by North Star Design Studio