Finance
A graduated payment mortgage (GPM) is characterized by:
AFixed payments for the entire loan term
BPayments that start lower and increase over time to a fixed level✓ Correct
CPayments that start higher and decrease over time
DPayments tied to the prime interest rate
Explanation
A graduated payment mortgage (GPM) starts with lower payments that increase over a set number of years before leveling off. They are designed to help buyers qualify when they expect their income to increase over time.
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