Annual Loan Cost

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January 1, 1 6 min read Definitions
Mortgage Constant
Mortgage Constant Mortgage Rates Real Estate Finance Annual Loan Cost Mortgage Comparison Debt Service Real Estate Investment
The Mortgage Constant is derived by dividing the total annual mortgage debt service, including both principal and interest, by the initial loan amount. It provides a useful way of calculating the annual cost of a loan as a percentage, making it easy to compare different mortgage options.
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