Graduated Payment Mortgages

This video explains what a graduated payment mortgage is and provides a comprehensive example to illustrate how a graduated payment mortgage is amortized. The video also discusses how in some cases graduated payment mortgages lead to negative amortization when the payments in the early years of the loan are insufficient to cover the interest accrued.
-
Edspira is the creation of Michael McLaughlin, an award-winning professor who went from teenage homelessness to a PhD. Edspira’s mission is to make a high-quality business education freely available to the world.
-
SUBSCRIBE FOR A FREE 53-PAGE GUIDE TO THE FINANCIAL STATEMENTS, PLUS:
• A 23-PAGE GUIDE TO MANAGERIAL ACCOUNTING
• A 44-PAGE GUIDE TO U.S. TAXATION
• A 75-PAGE GUIDE TO FINANCIAL STATEMENT ANALYSIS
• MANY MORE FREE PDF GUIDES AND SPREADSHEETS
eepurl.com/dIaa5z
-
SUPPORT EDSPIRA ON PATREON
* / prof_mclaughlin
-
GET CERTIFIED IN FINANCIAL STATEMENT ANALYSIS, IFRS 16, AND ASSET-LIABILITY MANAGEMENT
edspira.thinki...
-
LISTEN TO THE SCHEME PODCAST
Apple Podcasts: podcasts.apple...
Spotify: open.spotify.c...
Website: www.edspira.co...
-
GET TAX TIPS ON TIKTOK
/ prof_mclaughlin
-
ACCESS INDEX OF VIDEOS
www.edspira.co...
-
CONNECT WITH EDSPIRA
Facebook: / edspira
Instagram: / edspiradotcom
LinkedIn: / edspira
-
CONNECT WITH MICHAEL
Twitter: / prof_mclaughlin
LinkedIn: / prof-michael-mclaughlin
-
ABOUT EDSPIRA AND ITS CREATOR
www.edspira.co...
michaelmclaugh...

[@Arleah2821]

Thank for this video, are you able to do a video on how the first payment is calculated? Thank You.

[@oyyya]

You didnt even explain how you got that first payment ...

[@NexGenSlayer]

I read online that its just the growing annuity formula, but it still is very confusing.

[@d.davidson534]

I'm sure that initial payment rate is set by the bank.

[@whersmyfood16]

what is the formula to get the payment 474.83

[@CollMomo1]

+whersmyfood16 exactly, nice for the theory and all but getting that 474.83 is what is actually asked at exams lol

[@AnthonyGMendez]

What happens if you sell the house for 50K profit? does the end really matter?

[@arfenmalik1717]

That year one payment of 474.83
You really should have shown that calculation

[@botan1996]

it doesn't matter how to end up there, what matters is the concept of understanding the GPM, negative amortization, and concept of inflation in mortgages. the client could've chosen any monthly payment for the initial few years.

[@mauriceadams4905]

this is no good,