What Is Growing-Equity Mortgage?: Understand Its Pros and Cons
What Is Growing-Equity Mortgage?: Understand Its Pros and Cons
Abstract
About Growing Equity Mortgage As a borrower, there are multiple options to choose from when you are planning to buy a home or refinancing your mortgage. What Is GEM? GEM, also known as growing equity loan is an alternative type of fixed rate mortgage. With the growing equity loan program, buyers start making regular loan repayments, and after a certain period, the monthly mortgage payment increases. A GEM mortgage is not to be confused with a graduated-payment mortgage loan. You can use a home equity loan, HELOC, or mortgage refinancing to cover major expenses in the future like paying off your high-interest debts, remodeling, student loans, etc. With GEM you start with full payment and increase that amount and end up with high mortgage payments at the end of the loan. Conclusion Growing-Equity Mortgage is one of the best options to build your equity and pay off your mortgage faster.
