ACCOUNTING TERMS - ACCOUNTING DICTIONARY - ACCOUNTING GLOSSARY
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GRADUATED PAYMENT MORTGAGE Definition
GRADUATED PAYMENT MORTGAGE (GPM) ia a mortgage that features negative amortization in which early payments are insufficient to pay the interest due on the outstanding principal. As a result, the unpaid interest is added to the principal, thereby increasing the balance owed. The payments must graduate or increase over time until they can completely amortize the loan's remaining principal balance by its maturity. The number, frequency and rate of increases are specified in the original contract.
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FIRM is members of a business organization that owns or operates one or more establishments, e.g. a legal or accounting firm.
BROKER-DEALER is any person or institution, other than a bank, engaged in the business of buying or selling securities on its own behalf or for others.