Graduated Payment Mortgage (GPM)
Definition of "Graduated payment mortgage (GPM)"
A special kind of fixed rate mortgage (conventional mortgage) in which the monthly payments are less in the beginning years and more in the later years. After five years it usually levels off for the remainder of the loan payment. Under the level annuity, fully-amortized mortgage, each month's payment is the same. For some purchasers the required monthly payment is so high that a lender will not make the loan simply because the borrower's income is insufficient. With a GPM, monthly mortgage payments start at an amount less than would be required under a level annuity payment and increase periodically over the life of the mortgage. Therefore, the borrower can fiance a larger purchase than if the monthly payment were level throughout the life of the mortgage.
Popular Real Estate Terms
Selling price for a property less assumed mortgages by the buyer. For tax purposes, the computation of the contract price is critical. ...
lender who charges an exorbitant interest rate, which is typically illegal because it exceeds the interest rate allowed in the state. A borrower may go to a loan shark if he cannot obtain ...
A loan that is to be replaced by a permanent loan. ...
Something that has been built and physically exists at a specified location, such as a building, garage, etc. Something consisting of related parts, such as the organization and terms of ...
Precalculated tables providing the present values of $1 or an annuity of $1 for different time periods and at different discount rates. ...
People often use the term in their everyday discourse, yet many wonder what the meaning of common law genuinely implies. Common law refers to a system of jurisprudence based on court ...
Right to an item belongs to the public at large so anyone can use it. An example is a real estate software program that is publicly available by an electronic bulletin board service. ...
Being an administrator in the state where an individual was domiciled at the time of death. The domiciliary administrator is considered the primary and principal estate administrator. ...
Retail businesses next to each other with common walls on each side and the same roof. ...
Comments for Graduated Payment Mortgage (GPM)
Do you accept section 8?
Apr 12, 2019 17:52:43Hi Brandie! To find an answer, we recommend that you get in touch with a lender and a local real estate agent.
Apr 18, 2019 06:35:51Have a question or comment?
We're here to help.