Stewart Brown Jr – Mortgage Loan Originator – Purchase or Refinance
| The graduated payment mortgage loan is often referred to as GPM. It’s a mortgage with low initial monthly payments which gradually increase over a specified period of time. These mortgages are mostly geared towards younger people who can’t afford large payments presently, but can realistically expect their incomes to rise in the foreseeable future. For instance a medical student who is just about to complete medical school may not have the financial capability to pay for a mortgage loan, but once graduated and commencing employment, it is more than probable they will be earning a high income. GPMs are a form of negative amortization loan. GPMs are currently only readily available in the U.S. for mortgages insured by the Federal Housing Administration (FHA). Over a period of time, typically 5 to 15 years, the monthly FHA mortgage payments increase every year according to a predetermined percentage. For example, a borrower may have a 30-year graduated payment mortgage with monthly payments that increase by 7% every year for 5 years. At the end of 5 years, the increases cease. The borrower would then pay this new increased amount monthly for the remainder of the 25 years of the loan term. |
| The graduated payment mortgage loan is often referred to as GPM. It’s a mortgage with low initial monthly payments which gradually increase over a specified period of time. These mortgages are mostly geared towards younger people who can’t afford large payments presently, but can realistically expect their incomes to rise in the foreseeable future. For instance a medical student who is just about to complete medical school may not have the financial capability to pay for a mortgage loan, but once graduated and commencing employment, it is more than probable they will be earning a high income. GPMs are a form of negative amortization loan. GPMs are currently only readily available in the U.S. for mortgages insured by the Federal Housing Administration (FHA). Over a period of time, typically 5 to 15 years, the monthly FHA mortgage payments increase every year according to a predetermined percentage. For example, a borrower may have a 30-year graduated payment mortgage with monthly payments that increase by 7% every year for 5 years. At the end of 5 years, the increases cease. The borrower would then pay this new increased amount monthly for the remainder of the 25 years of the loan term. |
Reach out to me for further detailed information on Graduated Payment Mortgage loan programs.