A
Graduated Payment Mortgage is a mortgage in which the
payments increase over the life of the mortgage, allowing
the borrower to make very low payments at the beginning of
the loan. Graduated Payment Mortgages or GPM's were
created to make possible early home ownership for borrowers
who expect their incomes to increase.
Graduated
Payment Mortgages allow homeowners to make smaller monthly
payments initially and then they increase gradually over a
period of time. Since the
initial
payment is used to qualify the borrower, the GPM may allow a
borrower to qualify who would not
qualify
with a standard
fixed-rate mortgage. Compare free, multiple graduated
payment mortgage quotes with no obligation.
