Finance
A 'graduated payment mortgage' (GPM) in Alaska is characterized by:
APayments that decrease over time
BPayments that start low and increase at set intervals, designed for borrowers whose income is expected to grow✓ Correct
CPayments that are adjusted quarterly based on an index
DPayments that are fixed for 5 years then adjust annually
Explanation
A graduated payment mortgage starts with below-market monthly payments that increase at predetermined intervals. It is designed for borrowers who expect their income to grow over time (e.g., recent graduates). Early payments may not cover all interest, causing negative amortization.
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