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Growing Equity Mortgage (GEM) |
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Growing Equity Mortgage (gem)A fixed rate, graduated payment loan allowing low beginning payments and a shorter term because of higher payments as the loan progress. Based on the theory of increasing income by the buyer and, therefore. ability to make higher future payments. When state law applies, usury laws in some states may not presently allow such loans when less than interest only payments create interest on interest.Growing Equity Mortgage (GEM)Mortgage with a fixed interest rate and payments that increase throughout the term of the mortgage.Growing Equity Mortgage (GEM) Similar MatchesBlanket mortgageBlanket mortgageA mortgage that covers more than one property owned by the same borrower. Mortgage durationMortgage durationA modification of standard duration to account for the impact on duration of MBSs of changes in prepayment speed resulting from changes in interest rates. Two factors are employed: one that reflects the impact of changes in prepayment speed or price. Mortgage Life InsuranceMortgage Life InsuranceA term life insurance policy for theamount of the declining balance of a loan secured by a mortgage or deed of trust. The beneficiary under the policy is the mortgagee. In the event of death (some policies also cover disability) of the insured (mortgagor), the mortgage is paid in full. Wrap Around MortgageWrap Around MortgageA second or junior mortgage with a face value of both the amount it secures and the balance due under the first mortgage. The mortgagee under the wrap-around collects a payment based on its face value and then pays the first mortgagee. It is most effective when the first has a lower interest rate than the second, since the mortgagee under the wrap-around gains the difference between the interest rates, or the mortgagor under the wrap-around may obtain a lower rate then if refinancing. GEM (growing equity mortgage)GEM (growing equity mortgage)Mortgage in which annual increases in monthly payments are used to reduce outstanding principal and to shorten the term of the loan. Further SuggestionsGeneral Mortgage BondCollateralized mortgage obligation (CMO) Lehman Brothers Adjustable Rate Mortgage Index First mortgage Tracker mortgages first mortgage Shared appreciation mortgage Assumable mortgage Mortgage broker Repayment mortgage Real Estate Mortgage Investment Conduit (REMIC) commercial mortgage Mortgage Backed Securities Clearing Corporation (MBSCC) mortgage indemnity Junior mortgage Closed end mortgage Government National Mortgage Association (Ginnie Mae) fixed rate mortgage Consolidated mortgage bond Mortgage lien Senior mortgage bond Lifetime reverse mortgage Mortgage arrears Mortgage pipeline risk Cooperative mortgages |
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