Article: Interest Only Mortgage? Consider A Graduated Payment Mortgage
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Interest Only Mortgage? Consider A Graduated Payment Mortgage
Graduated payment mortgages (GPM) offer financing solutions for those who expect their income to rise in the future. A hybrid of an adjustable rate mortgage and fixed-rate mortgage, a GPM with its fixed interest rate starts with low payments that increase yearly based on the loan?s terms. If you have considered an interest only mortgage loan in the past, you might want to consider the benefits of a graduated payment mortgage instead.
GPM Features
A GPM offers low monthly payments by increasing payments for the rest of the loan?s term. At the beginning your mortgage will not completely cover your interest charges (negatively amortizing), but larger payments will be made later on to cover both interest and principal.
Generally, a GPM?s beginning p...
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