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Due to the Coronavirus, we will ONLY be taking applications on-line. ALL MLO's will be working from home. Calls, emails and all correspondence will be returned in turn times please expect less but no more than a 2.5 hour returns. We have faith this is temporary. Please continue to wash your hands and pray for all of our safety.

Graduated Payment Mortgages

A graduated payment mortgage is a loan where the payment increases each year for a predetermined amount of time (such as 5 or 10 years), then becomes fixed for the remaining duration of the loan.

When interest rates are high, borrowers can use a graduated payment mortgage to increase their chances of qualifying for the loan because the initial payment is less. The downside of opting for an smaller initial payment is that the interest owed increases and the payment shortfall from the initial years of the loan is then added on to the loan, potentially leading to a situation called "negative amortization." Negative amortization occurs when the loan payment for any period is less than the interest charged over that period, resulting in an increase in the outstanding balance of the loan.