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About: Graduated payment mortgage loan     Goto   Sponge   NotDistinct   Permalink

An Entity of Type : yago:Relation100031921, within Data Space : dbpedia.demo.openlinksw.com associated with source document(s)

Type: companyyago:WikicatLoansyago:Abstraction100002137yago:Debt113397174yago:Liabilities113396054yago:Loan113398953yago:Possession100032613yago:Relation100031921 New Facet based on Instances of this Class

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 people who cannot afford large payments now, but can realistically expect to raise their incomes in the future. For instance a medical student who is just about to finish medical school might not have the financial capability to pay for a mortgage loan, but once he graduates, it is more than probable that he will be earning a high income. It is a form of negative amortization loan.