Graduated Payment

What is a Graduated Payment loan?

A graduated payment loan is a loan that the repayments grow over time.

Is a graduated payment loan better?

A graduated payment loan is generally better for students with a low income that are studying and are expecting to make a larger income in the future.

What is the standard home loan?

Fixed rate loans are the most popular in the United States and a generally fixed for 15 and 30 years but outside the period they are fixed for is a lot lower.

What are the advantages of a graduated payment loan?

Borrowers that expect to earn a higher income in the future are more suited to this type of loan

What are the disadvantage of a variable rate loan?

If the borrower doesn't make higher income in the future, they can be left with a loan that they can't pay