Finance
A growing equity mortgage (GEM) is characterized by:
AFixed payments throughout the term
BPayments that increase over time, with the extra amount applied directly to principal✓ Correct
CPayments that decrease as the balance is paid down
DA balloon payment at the end of the term
Explanation
A growing equity mortgage has scheduled payment increases, with the additional amount applied to principal reduction, resulting in faster loan payoff and equity buildup.
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