Finance
In Ohio, 'graduated payment mortgage' (GPM) loans feature:
APayments that decrease over time as the loan is paid down
BLower initial payments that increase over a set period, then level off✓ Correct
CEqual principal payments with declining interest
DPayments tied to changes in a specified index
Explanation
GPMs start with lower monthly payments that increase at a predetermined rate for a period (typically 5-10 years) before leveling off. They are designed for buyers who expect income to grow over time.
Related Ohio Finance Questions
- What is an FHA 203(k) loan?
- A buyer in Columbus, Ohio wants to use an FHA loan. What is the minimum credit score generally required by FHA guidelines for the minimum down payment?
- The 'underwriting' process in Ohio mortgage lending involves:
- An Ohio homebuyer qualifies for the Ohio Housing Finance Agency (OHFA) first-time homebuyer program. A key benefit of OHFA programs is:
- In Ohio, a 'loan modification' differs from a refinance in that a loan modification:
- What is the primary purpose of an escrow account held by a mortgage lender?
- What is HMDA (Home Mortgage Disclosure Act)?
- An adjustable-rate mortgage (ARM) in Ohio includes a 'cap' provision that:
Practice More Ohio Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Ohio Quiz →