Finance
What is a graduated payment mortgage (GPM) and who benefits from it in Nevada?
AA mortgage with decreasing payments over time; benefits older borrowers
BA mortgage with lower initial payments that increase over time; benefits buyers expecting income growth✓ Correct
CA mortgage with equal payments throughout the term
DA government-subsidized mortgage for Nevada teachers
Explanation
A GPM starts with lower-than-normal payments that gradually increase over a set period, then level off. It benefits borrowers who expect their income to grow — such as younger professionals in Nevada's growing economy — but initial payments may not fully cover interest, causing negative amortization.
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