Any mortgage other than a fixed-interest-rate, level-payment amortizing loan. AMIs provide unique approaches to mortgage lending, often accommodating borrowers with non-traditional income streams or financial situations.
A flexible-payment mortgage is a financing option that allows borrowers to make varying monthly payments but ensures that the total repayments are sufficient to amortize the loan over its term.
A graduated-payment mortgage is a home loan characterized by low initial monthly payments that gradually increase over time according to a predetermined schedule.
A Graduated-Payment Mortgage (GPM) is a type of fixed-rate mortgage where the initial payment starts low and then increases at regular intervals over a set period, after which it stabilizes for the remaining loan term.
A Pledged Account Mortgage (PAM) is a type of home purchase loan where the borrower sets aside a sum of cash in a pledged account that is used to supplement mortgage payments in the initial years, reducing the payment amount during this period.
A Variable-Payment Plan is a mortgage repayment schedule that allows for periodic changes in monthly payments. These changes can result from the expiration of an interest-only period, a planned step-up in payments, or fluctuations in an interest rate index.
