A graduated payment, is a type of negative amortization mortgage loan-it is often referred to as a graduated payment mortgage or GPM. During the initial payment period a GPM offers a low payment amount, which gradually increases over some period of time-usually over three to fifteen years. If you take out a GPM you should receive a payment schedule that shows how the payments will increase over time. The rationale behind a GPM is that many home buyers can realistically expect their incomes to increase in parallel with the mortgage payment increases. For example, a graduate student who is about to graduate can confidently expect a rapid increase in salary over the next several years; a GPM with low initial payments might allow the student to purchase a home while finishing up the last year or two of school. Needless to say, a GPM does place a certain amount of risk upon the future ability to pay.