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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 MatchesRenegotiable Rate MortgageRenegotiable Rate MortgageA real property loan calling for an adjustment in the interest rate at a given time. Example: A loan with a 15 year amortization is adjusted to current interest rates after 2 years. The lender agrees to make the adjusted loan at the new rate as long as the old loan is not in default. The Federal Reserve Board allows the original loan to be treated either as a balloon payment loan or a variable rate loan. However, points must be figured into the A.P.R. based on the time or renegotiation (2 years rather than 15). Federal National Mortgage AssociationFederal National Mortgage AssociationIn the US, a government-backed corporation which purchases mortgages from lenders and resells them to investors. It is financed by the issue of debt securities. Equity shares, known as Fannie Maes, are traded on the New York Stock Exchange. First mortgageFirst mortgageA type of mortgage that through a lien gives precedence to the lender of the first mortgage over all other lenders in case of default. Mortgage deedMortgage deedThis is the agreement which explains the conditions of the mortgage (loan). It is a document to be signed by all parties to the remortgage on your property, and will be sent to HM Land Registry to register the remortgage. Mortgage BrokerMortgage BrokerOne who, for a fee, brings together a borrower and lender, and handles the necessary applications for the borrower to obtain a loan against real property by giving a mortgage or deed of trust as security. Also called a loan broker. Further SuggestionsWholesale mortgage bankingWraparound mortgage Mortgage advance All inclusive Trust Deed (wrap around mortgage) Non status mortgage Strip mortgage participation certificate (strip PC) Mortgagee reverse annuity mortgage Private Mortgage Insurance H Hard Money Mortgage repayment mortgage Mortgage debt Standing mortgage graduated payment mortgage Low start mortgage GEM (growing equity mortgage) endowment mortgage Government National Mortgage Association base rate tracker mortgage Mortgage code arbitration scheme Mortgage duration Pension mortgage Gnma (government National Mortgage Association) Options interest only mortgage Mortgage lien |
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