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
One that is legally binding because it is in conformity with legal requirements and conditions. ...
Ability of a large group of retail stores or shopping center to take business away from other smaller or more distant shopping stores. ...
Conditions and terms agreed to in a contract. ...
Reformation in real estate means a legal action to straighten out an erroneous deed, a misleading document, an error, a paragraph, or a contract entirely which resulted from an ...
The closing process is the final step of a property sale. It starts when the home seller agrees to the home buyer’s offer and it ends after all Closing costs are paid ...
The company is not responsible to a third party if an account or financial instrument is dishonored by the debtor. The creditor's recourse is solely to the debtor's property. An example is ...
U.S. law making it illegal to discriminate when giving credit based on factors such as race, religion, color, age, national origin. A lender must respond to credit applications within 30 ...
Barrel, reservoir, or tank for storing rain runoff. ...
“What is Situs?”, you ask.Situs is a word in Latin that basically means the site or location where something exists or originates. Like most words in latin, situs is usually ...
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.