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Graduated-Payment Mortgage (GPM)

A graduated-payment mortgage is designed with lower payments in the early years of a loan. These payments increase gradually until they are sufficient to amortize the loan fully. Thus, borrowers are able to obtain home loans with affordable payments while banks earn the desired interest rate over the loan term.

The GPM is another alternative to the conventional adjustable rate mortgage, and is making a comeback as borrowers and mortgage companies seek alternatives to assist in qualify for home financing

Always ask your mortgage broker if this is an option with the home loan that you are looking to obtain.

 
 

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