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 interest-only payment would be, negative amortization is created.

Investopedia Says:
Graduated-payment mortgages are similar to payment option adjustable-rate mortgages (ARMs); however, a graduated-payment mortgage is a fixed-rate mortgage. The benefit of a graduated-payment 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.

Related Terms:
Adjustable-Rate Mortgage
Deferred Interest
Fixed Interest Rate
Graduated Payment Mortgage
Graduation Rate
Negative Amortization
Payment Option ARM

• Operating Cash Flow (OCF)
• Operating Cash Flow Ratio
• Operating Earnings
• Operating Expense
• Operating Expense
• Operating Income
• Operating Income Before Depreciation And Amortization (OIBDA)
• Operating Income Before Depreciation And Amortization (OIBDA)
• Operating Lease
• Operating Leverage
• Operating Margin
• Operating Netback
• Operating Profit
• Operating Ratio
• Operational Efficiency
• Operational Risk
• Opinion Shopping
• Opportunity Cost
• Optimization
• Optimized Portfolio as Listed Securities (OPALS)
• Optimized Portfolio as Listed Securities (OPALS)
• Option
• Optionable Stock
• Option Adjustable-Rate Mortgage (Option ARM)
• Option Adjusted Spread (OAS)