Annual Debt Service refers to the total annual amount of principal and interest payments required to repay a loan.
The Annual Mortgage Constant is a ratio that quantifies the total annual mortgage payments, including both principal and interest, compared to the initial loan principal. It is used by lenders and borrowers to determine the yearly cost of a mortgage and assess its affordability.
A constant payment loan is a type of loan structured with equal periodic payments that ensure the loan is paid off by the end of its term. This type of loan is often used in mortgage financing.
A mathematically derived factor from compound interest functions indicating the level periodic payment required to fully pay off a $1.00 loan over a certain period.
Prepaid interest refers to interest that is paid in advance of the time it is earned. It's typically associated with mortgage loans where borrowers pay interest upfront to reduce future interest payments.
A Working Mortgage is a mortgage loan where payments are made more frequently than once a month, usually timed to align with the borrower's pay period. This payment structure typically accelerates the amortization of the loan, resulting in less interest paid over the life of the loan.
