Posted on: 03rd Apr, 2004 01:27 am
Growing Equity Mortgage is a fixed-rate mortgage in which scheduled payments are increased over a specified period of time. It helps in paying off the remaining principal balance quickly. It is also known as graduated equity mortgage and rapid amortization.
For example, Marian took a fixed rate mortgage of $1,200,000 for 5 years at 1% interest rate. His monthly payments are supposed to be $21,000. In the 4th year, he increased his monthly payment to $42,000 which helped him to pay off his loan, a year earlier. This type of a mortgage is known as 'growing equity mortgage'.
For example, Marian took a fixed rate mortgage of $1,200,000 for 5 years at 1% interest rate. His monthly payments are supposed to be $21,000. In the 4th year, he increased his monthly payment to $42,000 which helped him to pay off his loan, a year earlier. This type of a mortgage is known as 'growing equity mortgage'.
I have heard that growing equity mortgages are eligible for insurance under HUD, I would like to have the some details about the kind of insurances which are eligible. Thanks for your cooperation.
hi nelson,
welcome to mortgagefit forum.
hud does provide insurance coverage for growing equity mortgages. insurance is available under:
if you need more details about the mentioned sections under which insurance is available then kindly let me know. i would provide you with all the details about these sections.
thanks
blue
welcome to mortgagefit forum.
hud does provide insurance coverage for growing equity mortgages. insurance is available under:
- section 203(k) for rehabilitation, refinance or purchases,
- section 203(b) for one to four family homes,
- section 203(n) for shares in co-operative housing and
- section 234(c) for units in condominiums.
if you need more details about the mentioned sections under which insurance is available then kindly let me know. i would provide you with all the details about these sections.
thanks
blue
how do I apply for for it and what forms do i need and who do I need to go through. I don't know where to begin if anyone could help me please email me at luvhodge@yahoo.com
does anyone still do GEM's? i haven't even seen them discussed in years.
