Alabama Real Estate Practice Exam 2026 – All-in-One Guide to Master Your Real Estate License!

Question: 1 / 400

What is a growing equity mortgage (GEM) designed for?

People expecting a decrease in salary

People expecting their salary to remain the same

People expecting their salary to increase

A growing equity mortgage (GEM) is designed for people who expect their salary to increase. This type of mortgage increases the monthly payment over time as the borrower's salary increases, allowing them to pay off the loan faster and build equity in their home. Options A and B are incorrect because they suggest a decrease or stagnant salary, which would not be beneficial for a GEM. Option D, first-time homebuyers only, is incorrect as GEMs can be beneficial for any borrower who expects their salary to increase.

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First-time homebuyers only

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