What is a graduated-payment mortgage?
The Bankrate.com financial term of the day is: "Graduated-Payment Mortgage" or "GPM"
Let's say you're young and are hungry to buy a home, but you're earning a starting salary, maybe you have student loan obligations or a baby on the way -- so you're not sure how you could swing a house payment. A graduated-payment mortgage, or GPM, might be what you're looking for. It's a fixed-rate home loan with artificially low payments in the beginning that gradually increase, maybe over the course of the first five or 15 years.
A graduated-payment mortgage, or GPM, allows you to ease your way into your mortgage payment.
To shop for the perfect home loan, visit the Mortgages section at Bankrate.com.