Dictionary of Business Terms: level-payment mortgage
level-payment mortgage
mortgage that requires the same payment each month or other period, for full amortization.
Dictionary of Real Estate Terms: level-payment mortgage
level-payment mortgage
requires the same payment each month (or other period) for full amortization.
Example: Abel borrows $150,000 to buy a house. The level-payment mortgage at 6% interest, payable over 30 years, requires a $899.33 monthly payment for principal and interest. That payment will be constant over the life of the loan.
