# Graduated payments

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{{Short description|Repayment terms}}
'''Graduated payments''' are [repayment terms](/source/payments) that gradually increase over the life of a closed-end obligation. A graduated payment [loan](/source/loan) typically involves [negative amortization](/source/negative_amortization) and is intended for students, in the case of student loans,<ref>{{cite web|url=http://money.usnews.com/money/blogs/my-money/2013/09/20/which-student-loan-repayment-plan-should-you-choose|title=Which Student Loan Repayment Plan Should You Choose?|publisher=U.S. News & World Report}}</ref> and homebuyers, in the case of real estate.<ref>{{cite web|url=http://www.marimarkmortgage.com/blog/fha-loans/graduated-mortgage-payments|title=Graduated Mortgage Payments|publisher=Marimark Mortgage}}</ref> These individuals generally have moderate incomes with the expectation of increased income over the next 5–10 years.

All [Federal Housing Administration](/source/Federal_Housing_Administration) (FHA) lenders can offer an FHA [Graduated payment mortgage loan](/source/Graduated_payment_mortgage_loan) with lower monthly payments that increase annually over the first 5–10 years of the loan, before leveling out to a fixed monthly payment for the remaining years of the mortgage. There are five FHA Graduated Payment Mortgages offered in 15-year and 30-year terms. The difference between the plans lies in the rate of increase of the mortgage payment, which annually increases 2.5%, 5%, or 7.5% until it levels off.<ref>{{cite web|url=http://www.fha.com/graduated_payment|title=FHA Graduated Payment Mortgages|publisher=FHA.com}}</ref>

==References==
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==External links==
* [https://www.dentalmortgages.com/ Dentist Mortgage Loans] {{Webarchive|url=https://web.archive.org/web/20191204062459/https://www.dentalmortgages.com/ |date=2019-12-04 }}

Category:Personal finance

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