A graduated payment mortgage (GPM) enables the borrower to have lower payments earlier in the mortgage and increases payments later on. The assumption is the borrower’s income will increase over time so that it will be easier for the borrower to meet all payments. Suppose we borrow $60,000 on a 30-year monthly mortgage. We obtain a GPM where monthly payments increase 7.5% per year through year 5 and then remain constant from year 5 through year