Graduated payment mortgages may require payment of interest on accumulated, unpaid interest.

Name: Graduated payment mortgages may require payment of interest on accumulated, unpaid interest.
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Question

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The GPM plan has been referred to by a few of its critics as the "gyp 'em" plan, in that early payments may not be large enough to cover interest, and therefore, later payments must cover not only the amortization of the loan but also interest on the accumulated, unpaid, early interest.

Graduated Payment Mortgages May Require Payment of Interest on Accumulated