Graduated Payment Mortgage
- Graduated Payment Mortgage
- 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 7-12% annually from their initial base payment amount until the full payment is reached.
In a graduated payment mortgage, only the low initial rate is used to qualify the buyer, which allows many people who might not otherwise qualify for a mortgage to own a home. This type of mortgage payment system may be optimal for young homeowners as their income levels gradually rise to meet higher mortgage payments.
Investment dictionary.
Academic.
2012.
Look at other dictionaries:
graduated payment mortgage — ( GPM) A mortgage in which the monthly payment of principal and interest begins at a low amount and progressively increases to a predetermined higher amount. Thereafter, the amount of the monthly payment remains constant for the remaining life of … Financial and business terms
graduated payment mortgage — graduated payment mortgage, U.S. a mortgage on which monthly payments are low in the early years after purchase of a house, rising gradually thereafter … Useful english dictionary
Graduated payment mortgage loan — 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 frame. These plans are mostly geared towards young men and women who cannot afford large… … Wikipedia
graduated-payment mortgage — ( GPM) 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 increase over a predetermined period (usually 3, 5, or 7 years), and then are fixed… … Financial and business terms
graduated payment mortgage — /ˌgrædʒueɪtɪd ˌpeɪmənt mɔ:gɪdʒ/ noun a mortgage where the monthly payments gradually rise over the lifetime of the mortgage. Abbreviation GPM … Dictionary of banking and finance
Graduated-payment mortgages (GPMs) — 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 are gradually increased over a predetermined period (usually 3,5, or 7 years) and then are fixed at a … Financial and business terms
graduated payment mortgages — (GPM) See mortgage … Black's law dictionary
graduated payment mortgages — (GPM) See mortgage … Black's law dictionary
Mortgage loan — Mortgage redirects here. For other uses, see Mortgage (disambiguation). Finance Financial markets … Wikipedia
mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… … Black's law dictionary
