Finance
A graduated payment mortgage (GPM) in Indiana features:
AFixed payments throughout the loan term
BLower initial payments that increase gradually over a specified period, then level off✓ Correct
CPayments that decrease as principal is paid down
DInterest-only payments for the first 10 years
Explanation
A GPM starts with lower monthly payments that gradually increase over the early years of the loan. This can help buyers qualify initially but may create payment shock later and risks negative amortization.
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