The Graduated Payment Mortgage: Solving the Initial Payment Enigma.
- UNCG Author/Contributor (non-UNCG co-authors, if there are any, appear on document)
- Daniel T. Winkler, Professor (Creator)
- Gustav D. Jud, Retired (Contributor)
- Institution
- The University of North Carolina at Greensboro (UNCG )
- Web Site: http://library.uncg.edu/
Abstract: The graduated-payment mortgage (GPM) has a unique stair-step payment schedule that often enhances borrower qualification for young, first-time home buyers who are anticipated to have increasing incomes. The determination of the initial payment on a GPM mortgage is often regarded as complex; therefore, textbook authors normally disregard its theoretical development and substitute instead GPM interest factor tables. This study develops a general equation for finding the initial payment on a GPM and programmable calculator and computer spreadsheet routines for implementing the general equation. This approach enhances the technical understanding of the GPM, and it offers more flexibility than a table approach.
The Graduated Payment Mortgage: Solving the Initial Payment Enigma.
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Created on 1/1/1998
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Additional Information
- Publication
- Journal of Real Estate Practice and Education, vol. 1, no. 1, 1998, pp. 67-79
- Language: English
- Date: 1998
- Keywords
- Graduated-payment mortgage (GPM), Stair-step payment schedule