DEFINITION of 'Graduation Period'
The period of time on a graduated payment mortgage during which the monthly payment rises by a certain percentage at set intervals, usually annually. The interest rate at which monthly payments are set to increase by is fixed over the entire graduation period. If the actual payment is less than what an interestonly payment would be, negative amortization is created.
BREAKING DOWN 'Graduation Period'
Graduatedpayment mortgages are similar to payment option adjustablerate mortgages (ARMs); however, a graduatedpayment mortgage is a fixedrate mortgage. The benefit of a graduatedpayment mortgage over a payment option ARM is that the borrower knows in advance, and for certain, what the payments and remaining principal balance of the mortgage will be over the entire life of the mortgage.

Graduation Rate
The percentage increase in the monthly payment on a graduated ... 
Negative Amortization
An increase in the principal balance of a loan caused by making ... 
Graduated Payment Mortgage
A type of fixedrate mortgage in which the payment increases ... 
GrowingEquity Mortgage
A fixed rate mortgage on which the monthly payments increase ... 
Level Payment Mortgage
A type of mortgage that requires the same dollar payment each ... 
Mortgage
A debt instrument, secured by the collateral of specified real ...

Home & Auto
Choose Your Monthly Mortgage Payments
Exotic mortgages allow you to decide how much to pay. Find out how much they really cost. 
Credit & Loans
Understanding The Mortgage Payment Structure
We explain the calculation and payment process as well as the amortization schedule of home loans. 
Options & Futures
Make A RiskBased Mortgage Decision
Find out how to choose which mortgage style is right for you. 
Credit & Loans
Mortgages: FixedRate Versus AdjustableRate
Both of these have advantages and disadvantages depending on your financial needs and prospects. 
Options & Futures
Be MortgageFree Faster
Getting rid of this debt faster has bigger benefits than you might think. 
Credit & Loans
How Interest Rates Work On A Mortgage
A stepbystep explanation of the interest calculations, mortgage types, and how the loan is eventually "retired" ā which means paid off. 
Home & Auto
Understanding The Mortgage Payment Structure
While a mortgageās size and term set the baseline, the interest, taxes and insurance all influence the amount of the monthly payment. 
Credit & Loans
Mortgage Amortization Strategies
Should you get a 30year mortgage? A 15year one? Ways to decide which mortgage is the best fit. 
Home & Auto
Option ARMs: American Dream Or Mortgage Nightmare?
Option adjustable rate mortgages could make or break your homebuying experience. 
Home & Auto
Shopping for a mortgage in 2016? Use this tool first.
As homebuying technology has progressed, the process of finding the best mortgages rates for 2016 can all be done online.

What are the different types of subprime mortgages?
Clarify your understanding of subprime mortgages. Learn about the different types, how they work and when they might be beneficial. Read Answer >> 
What are the pros and cons of a simpleinterest mortgage?
Learn the difference between a simple interest mortgage and a standard mortgage, along with their relative advantages and ... Read Answer >> 
Why does the majority of my mortgage payment start out as interest and gradually ...
When you make a mortgage payment, the amount paid is a combination of an interest charge and principal repayment. Over the ... Read Answer >> 
I've come into a large amount of money. Should I invest it or pay off my mortgage?
There is no simple answer to this question as it depends on a number of key factors, namely the aspects or criteria of your ... Read Answer >> 
Is there any time I would want to have a zeroprincipal mortgage?
As a general rule, entering a zero principal mortgage, or what is commonly referred to as an "interestonly mortgage", is ... Read Answer >> 
What are the best ways to pay off my mortgage quickly?
Learn how mortgage payments may be reduced and how to save thousands on mortgage loans by lowering the interest and principle ... Read Answer >>