|
|
|
Comment On This Report Professionals |
|
| Home | Agents | Markets | Encyclopedia | Questions | Schools | Crime | Loans | Articles |
| A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z |
|
graduated payment mortgage (GPM) - real estate loan with low initial monthly payments which rise each year until they reach a level sufficient to amortize the loan at the stated interest rate over the loan period. While the payments over the first several years are lower than they would be with a standard fixed rate loan, they will cross over and be higher than the standard loan over the bulk of the loan term. For example with a $150,000 30-year loan at 7%, a standard loan would have 360 equal payments of $997.96. A typical GPM would have payments as follows: year 1, $820.51; year 2, $861.54; year three, $904.61; year 4, $949.84; year 5, $997.84 ; years 6 through 30, $1047.20. The FHA offers several popular GPMs.
|
|
© 2004 Bella Vista Publishing Company, Inc. ISBN 0-9718225-0-6
| ||||||
