The ________ mortgage sets the payments in advance in such a way that they rise steadily for 5 to 10 years,then level off to allow a person to buy a home earlier in life.
A)balloon payment
B)growing equity
C)shared appreciation
D)graduated payment
E)conventional

Question

Quizplus · Accepted Answer

The description matches the characteristics of a graduated payment mortgage, where payments start low and increase gradually for a fixed period before leveling off. This type of mortgage allows buyers with lower incomes to afford a home early in life when their earning potential is expected to increase over time. Balloon payment mortgages have a lump sum payment due at the end of the term, growing equity and shared appreciation mortgages typically involve sharing profits or equity with the lender or other parties, and conventional mortgages are not specifically designed to have a graduated payment structure.

The ________ Mortgage Sets the Payments in Advance in Such