Home mortgage loan in which the repayment begins with a relatively small amount, begins to rise slowly and, after some years, levels off to a fixed amount. It is designed for the young professionals and entrepreneurs whose incomes do not qualify them for the normal mortgages, but who can realistically expect continually growing incomes in the near future. In a 30-year graduated payment mortgage, the monthly installment amount starts at about 20% to 30% lower than a comparable fixed rate mortgage. This amount increases by 7% to 12% every year for about five years and then remains fixed for the next 25 years. The interest rate does not change during the entire period.
Related information about graduated payment mortgage:
- Graduated payment mortgage loan - Wikipedia, the free encyclopedia
A graduated payment mortgage loan, often referred to as GPM, is a mortgage with low initial monthly payments which gradually increase over a specified time ...
- What Is a Graduated Payment Mortgage (GPM)? - Mortgage Professor
Sep 20, 2004 ... GPM stands for "graduated payment mortgage", meaning a mortgage on which the payment starts low and rises over time. Since the initial ...
- Graduated Payment Mortgage Definition | Investopedia
A type of fixed-rate mortgage in which the payment increases gradually from an initial low base level to a desired, final level. Typically, the payments will grow ...
- FHA Graduated Payment Mortgages
Those who are considering using a Graduated Payment Mortgage to purchase a home should keep in mind that while their monthly payments to principal and ...
- Graduated Payment Mortgage (GPM) (Section 245(a))
Graduated Payment Mortgage (GPM) (Section 245(a)). Enables a household with a limited income that is expected to rise to buy a home sooner by making ...
- Monthly Payment Calculator:Fixed-Rate Graduated Payment Mortgage
Mortgage calculators, affordability, mortgage payments, rate of return, negative amortization, housing affordability, house affordability, loan comparison, arm ...
- Graduated-Payment Mortgage financial definition of Graduated ...
A type of stepped-payment loan in which the borrower's payments are initially lower than those on a comparable level-rate mortgage. The payments gradually ...
- Graduated Payment Mortgage - The Free Dictionary
A variation on the graduated payment mortgage is the adjustable graduated payment plan; this works on the same principle, but the interest rate varies ...