growing equity mortgage

Growing Equity Mortgage (GEM)

Mortgage with a fixed interest rate and payments that increase throughout the term of the mortgage.

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See GEM.

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Growing Equity Mortgage

A mortgage with a fixed interest rate and monthly payments that increase over time, at least up to a certain amount. A growing equity mortgage allows the mortgage holder to shorten the period of the mortgage with the increased payments. It makes the most sense if the mortgage holder expects to increase his/her income over time.

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growing equity mortgage (GEM)

A home loan arrangement in which the payments are increased each year by a specific amount,with the additional money credited to additional principal reduction. As a result, the loan is paid in full earlier than the normal amortization period.The FHA-
insured GEM program is called a 245(a) loan.