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A mortgage with a dedicated savings account, which earns interest, that is used to gradually reduce mortgage payments is known as what?

User Zlumer
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Answer:

Pledged Account Mortgage

Step-by-step explanation:

Pledged Account Mortgage -

It is a form of graduated payment mortgage , in which the interest payments and principal are taken out from the pledged account , in the early loan years , is known as pledged account mortgage.

The focus is to decrease the amount of payment in the initial years .

Hence, from the given information of the question,

The correct term is pledged account mortgage.

User Radheya
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