Which of the following is not true with respect to a growing-equity mortgage?

Question

Quizplus · Accepted Answer

A growing-equity mortgage involves increased payments, on a graduated basis, over the first five to ten years of the mortgage. However, unlike a traditional fixed-rate mortgage, the payments do not level off after the first five to ten years. Rather, the payments continue to increase at a fixed rate for the remaining duration of the mortgage, resulting in more equity being built up over time. Therefore, D is the incorrect statement.

Which of the Following Is Not True with Respect to a Growing-Equity