Phone: 818-709-3600

NMLS #239181

CA Dept of Real Estate  #01194866

Graduated Payment Mortgages

A graduated payment mortgage is a loan where the payment increases each year for a predetermined amount of time (such as 5 or 10 years), then becomes fixed for the remaining duration of the loan.

When interest rates are high, borrowers can use a graduated payment mortgage to increase their chances of qualifying for the loan because the initial payment is less. The downside of opting for an smaller initial payment is that the interest owed increases and the payment shortfall from the initial years of the loan is then added on to the loan, potentially leading to a situation called "negative amortization." Negative amortization occurs when the loan payment for any period is less than the interest charged over that period, resulting in an increase in the outstanding balance of the loan.

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Chase Financial Corp. is not affiliated with JPMorgan Chase & Co., its mortgage products, home equity line-of-credit-businesses, branded financial services, or any other business connected to JPMorgan Chase & Co. or its Affliates including JPMorgan Chase Bank, N.A.                               


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Address: 9535 Reseda Blvd # 102 Northridge, California 91324

Phone: (818) 709-3600

Fax: (818) 709-5300

Email: hg@chasefinancial.com

NMLS# 239181

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