Finance
A 'graduated payment mortgage' (GPM) is designed for borrowers who:
AA. Want a declining interest rate over time
BB. Expect their income to increase and can afford lower initial payments that increase over time✓ Correct
CC. Need a balloon payment mortgage
DD. Want to pay off the loan faster
Explanation
A GPM starts with lower monthly payments that gradually increase over a set period. It is designed for borrowers who expect income growth (e.g., young professionals). Early payments may not cover all interest, creating negative amortization.
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