Question

Graduated payments results in the borrower paying

A. The mortgage at 1/2 the standard rate

B. More at the beginning of the mortgage

C. Less at the beginning of the mortgage

D. Less at the end of the mortgage

Answer 1

C. Less at the beginning of the mortgage

Explanation:

The idea of a graduated payment mortgage is to make the mortgage more affordable, assuming the resources available to pay it will increase over time. The initial payments are lower, usually increasing by a few percent per year.