growing-equity mortgage

[ groh-ing-ek-wi-tee ]
/ ˈgroʊ ɪŋˈɛk wɪ ti /


a type of mortgage under which the interest rate is fixed but monthly payments increase annually to include more of the principal, so that the mortgage can be paid off in about half the conventional term. Unabridged Based on the Random House Unabridged Dictionary, © Random House, Inc. 2019