Alternative Mortgage Instruments Love Machine 14 years ago Alternative Mortgage InstrumentsVariants of mortgage instruments. For example graduated-payment mortgages, adjustable rate mortgages and variable rate mortgages, reverse-annuity mortgages.Recommended for you:ARM- Adjustable Rate MortgageRAM- Reverse Annuity MortgageGraduated-Payment Mortgages (GPMs)Growing-Equity Mortgage