Finance
A graduated payment mortgage (GPM) in Utah features:
AConstant payments throughout the loan term
BLower initial payments that increase over time to a fixed level✓ Correct
CPayments that decrease over the loan term
DPayments that adjust monthly based on an index
Explanation
A graduated payment mortgage starts with lower monthly payments that increase at specified intervals for a period before leveling off. This helps buyers qualify initially, but early payments may not cover all interest, causing negative amortization.
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