Finance
A graduated payment mortgage (GPM) features:
AFixed payments throughout the loan term
BLower initial payments that increase over time, then level off✓ Correct
CPayments tied to a market interest rate index
DA large balloon payment at maturity
Explanation
A graduated payment mortgage starts with lower monthly payments that gradually increase over a set period (typically 5–10 years), then level off. This structure helps buyers qualify based on lower initial payments, though early payments may not fully cover interest (negative amortization risk).
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