What is the meaning of Graduated payment mortgage (GPM)?

Graduated payment mortgage (GPM) is a mortgage on which the payment rises by a constant percent for a specified number of periods, after which it levels out over the remaining term and amortizes fully. For example, the payment might increase by 7. 5% every 12 months for 60 months, after which it is constant for the remaining term at a fully amortizing level.

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APABarry Goldsmith. (2010). Graduated payment mortgage (GPM). Retrieved September 24, 2026, from http://smartdefine.org/graduated_payment_mortgage_(gpm)/definitions/1155080
ChicagoBarry Goldsmith. 2010. "Graduated payment mortgage (GPM)" http://smartdefine.org/graduated_payment_mortgage_(gpm)/definitions/1155080 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, Graduated payment mortgage (GPM), Smart Define, viewed 24 September, 2026, <http://smartdefine.org/graduated_payment_mortgage_(gpm)/definitions/1155080>.
MLABarry Goldsmith. "Graduated payment mortgage (GPM)" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/graduated_payment_mortgage_(gpm)/definitions/1155080>