Meaning of growing-equity mortgage

grow'ing-eq'ui•ty mort"gage

Pronunciation: (grō'ing-ek'wi-tē), [key]
  1. 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.
Random House Unabridged Dictionary, Copyright © 1997, by Random House, Inc., on Infoplease.