Mortgage Monday

For first time home buyers, the thought of buying a new home is a rush of excitement and hesitance. The job market has been very selective due to the current economic condition and employers have the power to pay drastically less than they would have five years ago for the same job. For the young and employed, mortgages are harder to attain but there is an available alternative called graduated payment mortgage.

When obtaining a graduated payment mortgage, the preliminary payments will be smaller and will rise later in time. For those who need financial assistance, this loan provides an option similar to an interest only mortgage but graduated payment mortgages takes into account both mortgage and interest payments.

Similar to student loans, this type of mortgage is specialized usually for the younger employees who were not able to make traditional lump sum payments. These graduated payment mortgages assume that these upcoming professionals will be able to pay for the loan in the future.

Initially starting with small monthly payments, years pass by and the mortgage payments rise. Graduate students usually seek these loans and have a payment plan that escalates in price with time. After graduation and obtaining a job, the individual is expected to pay more based on salary. Lenders are given a guarantee that the young graduates must pay for the loan and those younger professionals will be able to purchase a home right away.