level payment amortization Definition | Business Dictionaries from AllBusiness.com

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Business Definition for: level payment amortization

level payment amortization

fixed-term LOAN with periodic payments that remain constant over the term of the loan. A portion of each payment goes to payment of interest, and the balance amortizes, or reduces, the outstanding principal. If the loan has a variable rate, the term may be extended if interest rates rise. Or there may be a balloon payment at maturity.

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