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 Sam
Site Admin
Joined: 21 May 2005
Posts: 299
Location: CALIFORNIA
127.85 Dollars($)
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 Posted: Sat Apr 03, 2004 2:27 am Post subject: Growing Equity Mortgage |
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Growing Equity Mortgage is a fixed-rate mortgage in which scheduled payments are increased over a specified period of time. It helps in paying off the remaining principal balance quickly. It is also known as graduated equity mortgage and rapid amortization.
For example, Marian took a fixed rate mortgage of $1,200,000 for 5 years at 1% interest rate. His monthly payments are supposed to be $21,000. In the 4th year, he increased his monthly payment to $42,000 which helped him to pay off his loan, a year earlier. This type of a mortgage is known as 'growing equity mortgage'. |
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Nelson
Guest
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| Posted: Thu Dec 21, 2006 2:43 pm Post subject: |
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| I have heard that growing equity mortgages are eligible for insurance under HUD, I would like to have the some details about the kind of insurances which are eligible. Thanks for your cooperation. |
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blue
Joined: 21 Oct 2005
Posts: 1138
Location: MARYLAND
137.90 Dollars($)
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| Posted: Thu Dec 21, 2006 3:05 pm Post subject: |
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Hi Nelson,
Welcome to Mortgagefit forum.
HUD does provide insurance coverage for Growing Equity Mortgages. Insurance is available under:- Section 203(k) for rehabilitation, refinance or purchases,
- Section 203(b) for one to four family homes,
- Section 203(n) for shares in co-operative housing and
- Section 234(c) for units in condominiums.
But the GEM will have to fulfill the requirements of the particular section under which such mortgage will be insured.
If you need more details about the mentioned sections under which insurance is available then kindly let me know. I would provide you with all the details about these sections.
Thanks
Blue
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Lets help each other. Try my blog |
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luvhodge
Joined: 05 Aug 2009
Posts: 3
2.11 Dollars($)
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| Posted: Wed Aug 05, 2009 8:47 am Post subject: I need to apply for the 203(K) |
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| how do I apply for for it and what forms do i need and who do I need to go through. I don't know where to begin if anyone could help me please email me at luvhodge@yahoo.com |
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gmakerley
Community Mentor
Joined: 09 Nov 2007
Posts: 10701
Location: bloomfield, ct
36.62 Dollars($)
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| Posted: Wed Aug 05, 2009 9:13 am Post subject: |
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does anyone still do GEM's? i haven't even seen them discussed in years.
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George M. Akerley
Credit & Lending Consultant
Word of Excellence
860-221-5044
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