Finance
A graduated payment mortgage (GPM) has payments that:
ADecrease over time as the balance is paid down
BStart lower and increase over a specified period before leveling off✓ Correct
CAre based on a percentage of the borrower's income
DAdjust monthly based on an interest rate index
Explanation
A GPM starts with lower payments that gradually increase over a period (usually 5-10 years) before leveling off for the remainder of the loan term.
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