What type of mortgage is suitable for a borrower finishing graduate school with expected significant income growth?

The suitable mortgage for a borrower finishing graduate school with anticipated significant income growth is a graduated payment mortgage. This type of mortgage is specifically designed for borrowers whose incomes are expected to increase over time.

The structure of a graduated payment mortgage allows the borrower to start with lower initial payments that gradually increase at predetermined intervals. This can be particularly advantageous for someone who is transitioning from an educational phase into a professional career where they expect their earnings to rise significantly. By starting with lower payments, the borrower can manage their initial financial obligations more easily, while anticipating that their income will support higher payments in the future.

This characteristic makes the graduated payment mortgage a strategic choice for borrowers in similar situations, as it accommodates their financial journey and growth.