What is the meaning of Graduated Payment Mortgage?

Subtopics: GPM 

Graduated Payment Mortgage is a mortgage which frequently has relatively low payments in its early life. These relatively low payments are often insufficient to amortize the principal. Therefore with the passage of time the payment schedule is stepped-up to paydown the early negative amortization, service the interest requirement, and paydown the total principal balance.

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APABarry Goldsmith. (2010). graduated payment mortgage. Retrieved September 24, 2026, from http://smartdefine.org/graduated_payment_mortgage/definitions/1155079
ChicagoBarry Goldsmith. 2010. "graduated payment mortgage" http://smartdefine.org/graduated_payment_mortgage/definitions/1155079 (accessed September 24, 2026).
HarvardBarry Goldsmith 2010, graduated payment mortgage, Smart Define, viewed 24 September, 2026, <http://smartdefine.org/graduated_payment_mortgage/definitions/1155079>.
MLABarry Goldsmith. "graduated payment mortgage" 21 October 2010. Web. 24 September 2026. <http://smartdefine.org/graduated_payment_mortgage/definitions/1155079>