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
Standard days when an organization is open and conducts business. Business days exclude weekends and holidays. ...
Short-term leases are leases that run its completion in a faster time than regular ones.In real estate, short term-leases usually refer to temporary housing; that is: rent.The length of a ...
Act occurring after the fact. ...
Through the master plan definition, we can understand it’s a plan describing both through narrative and maps the overall land use of a designated urban area. It includes both present ...
Also called an installment sales contract or contract foe feed. A type of creative financing in real estate allowing the seller to finance a buyer by allowing him or her to make a down ...
Expenditures paid for in advance such as property insurance, rent, and interest. Prepaid expenses are not used or consumed until later. They are typically of a recurring nature. ...
An acre is defined as a land unit that is commonly used in the US customary and imperial systems of 66 by 660 feet (one chain by one furlong). An acre is a measure of volume used in many ...
The method for splitting a commission between a registered real estate sales person and the sponsoring real estate broker, and between the listing broker and the selling broker, or any ...
So, after you discovered what a Home Appraisal is, you want to know more about the person responsible for it: the famous Appraiser.Good for you!The Appraiser is a certified individual ...
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.