What is Mortgage Payment Protection?
Progressive mortgages are a type of mortgage for young households. The peak period of income of young households is not now but in the future, so it is assumed that a household is before a relatively mature age (40-50 years old), and his income is not continuously increasing. For this reason, for those who are in a longer period of time, Households whose income is expected to increase steadily are set up a percentage of increasing repayments; for those households whose income will increase sharply in the near future, the income growth rate will be slowed down. Generally, it is determined that the repayments of loans are continuously increasing. Increased absolute number. [1]
Progressive payment mortgage
Right!
- Chinese name
- Progressive payment mortgage
- Foreign name
- Graduated-PaymentMortgages
- Types of
- Financial management
- English abbreviations
- GPMs
- Progressive mortgages are a type of mortgage for young households. The peak period of income of young households is not now but in the future, so it is assumed that a household is before a relatively mature age (40-50 years old), and his income is not continuously increasing. For this reason, for those who are in a longer period of time, Households whose income is expected to increase steadily are set up a percentage of increasing repayments; for those households whose income will increase sharply in the near future, the income growth rate will be slowed down. Generally, it is determined that the repayments of loans are continuously increasing. Increased absolute number. [1]
- Progressive payment mortgage. That is, the payment amount in the first few years is low, and some are not even enough to pay the monthly interest. Later, the monthly payment amount will gradually increase with the increase of the annual salary.
- This is designed for a young employee who has just started working, and its income may gradually increase with the promotion of his job. Some of these loan methods are also adjusting the loan amount according to the market interest rate while adjusting the payment amount. Progressive payment collateral makes it easy for borrowers to pay monthly fees and buy more dwellings with the same deposit, but because monthly payments are often insufficient to pay interest in the initial year, the principal increases year by year, making the lender more risk of default. .
- English: Graduated-PaymentMortgages (GPMs)