graduation rate

Definition

The percentage that the payment on a graduated payment mortgage (GPM) increases.

Use graduation rate in a sentence

If the graduation rate of a mortgage is too high, you may not be able to afford the mortgage payments after a certain point.

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When you buy a house, if the interest on the mortgage has a high GRADUATION RATE, you can expect to pay off the house sooner because of the increase in payments.

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They accepted the graduated payment mortgage because they expected it to have a very low graduation rate, but were shocked when the payment later rose very quickly.

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graduation period Graham and Dodd