Growing-Equity Mortgage

Most mortgages set a flat rate. Like...you're borrowing $200k at 5% for 15 years; then you'll pay $1,582 a month in payments. Every month, for all 180 months, until that home is fully and formally yours.

But in a growing-equity mortgage, payments increase over time. U,sually modestly but small changes on big numbers matter. That is, early in a buyer's history, most new home owners are totally strapped for cash. But as they get settled in their home, say, 10 years after buying it, that $1,582 payment might even seem low, almost "too easy" to pay, so growing equity mortgages take at least a small step toward matching needs with loan styles so that everyone is happy...ish.