Finance
Iowa's graduated payment mortgage (GPM) is characterized by:
APayments that decrease over time as the loan is paid down
BInitially lower payments that increase gradually over a specified period before leveling off at a fixed amount✓ Correct
CA payment structure based only on property tax increases
DZero interest payments for the first year
Explanation
A Graduated Payment Mortgage (GPM) features lower payments in the early years that increase at predetermined intervals (typically 5-10 years) until they reach a fixed level. GPMs were designed to help buyers qualify for larger loans based on anticipated future income growth.
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