Which type of mortgage is set up like a conventional loan but has increasing payments over time?

The Growth Equity Mortgage is designed to have payments that gradually increase over time, providing a unique structure compared to traditional loan types. This arrangement allows borrowers to start with lower initial payments that rise at set intervals, accommodating those who may expect their income to grow in the future. This type of mortgage is particularly beneficial for individuals who anticipate higher earnings later on, as they can handle the lower initial payment while preparing for the increasing costs as their financial situation improves.

In contrast, the other types of mortgages do not feature this increasing payment structure. A Fixed Rate Mortgage maintains consistent monthly payments throughout the loan term, providing predictability but no increase in payments. An Adjustable Rate Mortgage typically starts with lower fixed payments that may adjust based on interest rate changes at predetermined intervals, but it does not inherently include a pre-planned increase in payment amounts over time based on the borrower's income. A Balloon Mortgage involves low initial payments followed by a large final payment due at the end of the term, which also diverges from the gradual increase characteristic of a Growth Equity Mortgage.