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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.

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(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.

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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.

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(203) 859-8124 or (860) 761-1331
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About Us

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

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www.nmlsconsumeraccess.org

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Connecticut Mortgage Broker License

 -#11878 Connecticut Department of Banking

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​Florida Mortgage Broker License -MBR2290, Florida Office of Financial Regulation â€‹

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New York Mortgage Broker Registration -RMB 209144, New York Department of Financial Services​

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Contact Us

88 Riverside Ave, Suite 2

Bristol CT 06010

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20 Washington Ave, Suite 106
North Haven, CT 06473


Phone: (203) 859-8124 or (860) 761-1331


Brian@welcomehomemortgage.net

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Locations in Bristol & North Haven, CT.

Disclaimers

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