Graduated Payment Mortgages

These aren't loans we offer at Brick Mortgage, however we have this content for anyone looking for information on the subject.   

Understanding Graduated Payment Mortgages:
A Graduated Payment Mortgage (GPM) is a unique type of loan where the borrower's monthly payments start lower and gradually increase over time, typically for a set number of years. The idea is to align the mortgage payments with the borrower's expected income growth, making it easier to manage in the early years of the loan when income might be lower.

Who Benefits from a Graduated Payment Mortgage?

  1. 1. Early Career Professionals: Individuals who are just starting their careers and expect a steady rise in their income over the coming years can find GPMs beneficial. The loan structure complements their anticipated income trajectory.
  2. 2. Promotion Expectants: Those who are in professions where regular promotions and salary increments are the norm might consider a GPM to align with their future financial growth.
  3. 3. Professionals with Income Ladders: Certain careers, like medicine, where individuals move from residency to full-fledged practice, can benefit from the GPM's structure, accommodating their significant income jumps.
  4. 4. Strategic Homeownership: For individuals who wish to purchase a home that might initially stretch their budget but believe they'll be more financially comfortable in the near future, a GPM can bridge that initial gap.