what is a graduated payment mortgage 
a graduated payment mortgage is a type of home loan in which monthly payments start out at one amount then increase gradually over time this type of mortgage is designed to help homebuyers who may have difficulty qualifying for a loan because they earn a lower income who should consider a graduated payment mortgage a graduated payment mortgage may be right for someone who expects their income to increase steadily in future years if you don t have a realistic expectation that your income will rise over time a graduated payment mortgage could be problematic as your monthly payments increase 