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
Last installment payment, substantially greater than the previous installment payments. The unpaid balance of a long-term loan is paid off in a lump sum at the end of the loan term. ...
The Debt-to-Income Ratio’s (DTI) definition is a measure that allows one to compare the ability an individual has to afford a monthly debt payment out of their monthly gross income. ...
Unit of metric are measurement where one hectare is equivalent to 2.471 acres or 107,637 square feet. For example, a 3 hectare parcel of property is equivalent to 7.413 acres or 322,911 ...
Latitude line selected as a reference in the rectangular survey system. ...
A Seller’s Market is the opposite of a Buyer’s Market. It’s that moment when conditions of the Real Estate Market are more favorable to Home Sellers than to Home ...
Written statements about a person or business that are malicious, unfounded, and damaging. It is the basis for legal action. ...
Loan secured by the pledge of specific collateral. ...
The Graduate, REALTOR® Institute is a designation given to real estate agents who have completed the curriculum developed as an educational attainment program by the National ...
Also called the Rule of the Sum of the Digits. An approach that bank use to formulate a loan amortization schedule. It results in a borrower paying more interest in the beginning of a ...
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.