Principal Reduction

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January 1, 1 6 min read Definitions

Growing-Equity Mortgage GEM Mortgage Loans Principal Reduction Loan Maturity Real Estate Financing Home Loans

A Growing-Equity Mortgage (GEM) is a type of mortgage loan where the payment increases by a specific amount each year, with the extra payment amount applied toward reducing the principal balance, thereby shortening the loan's maturity period compared to a traditional fixed-payment mortgage.

Read more about Growing-Equity Mortgage (GEM).