Which mortgage type is structured like a 30-year conventional loan but has regularly increasing payments?

The correct answer is structured like a 30-year conventional loan but features regularly increasing payments, which is characteristic of a Rapidly Amortizing Mortgage. This type of loan aims to accelerate the repayment of the principal, resulting in progressively larger monthly payments over the life of the loan.

A fixed-rate mortgage typically has a consistent payment schedule throughout the loan term, while an adjustable-rate mortgage involves changes to the interest rate, which can cause variations in payment amounts but not necessarily a predictable increase. An interest-only mortgage allows the borrower to pay only the interest for a set period, after which they start paying both principal and interest, but does not inherently involve regularly increasing payments either. By contrast, the Rapidly Amortizing Mortgage specifically incorporates a structure where payments increase in frequency or amount, thereby reducing the loan balance at a faster pace.