Finance
A graduated payment mortgage (GPM) features:
APayments that remain constant throughout the loan
BPayments that start low and increase over time✓ Correct
CPayments that decrease as the loan is paid down
DVariable interest rate adjustments every 6 months
Explanation
A graduated payment mortgage starts with lower monthly payments that gradually increase over a set period (often 5-10 years) before leveling off. This can help first-time buyers who expect income growth.
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