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Loan Glossary

Growing Equity Mortgage:

Growing Equity Mortgage: A type of mortgage where the monthly payments start low but increase by a fixed amount each year for the entire life of the loan as compared to five years with a Graduate Payment Mortgage. The advantage of this type of loan is that the loan can usually be paid off in a shorter duration than a traditional fixed rate loan. The disadvantage of this loan is that the payment continues to go up irrelevant of the income of the borrower.