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annual mortgage constant |
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annual mortgage constant The amount of annual debt service compared to the principal amount of a loan and then expressed as a dollar amount. Annual debt service / Mortgage principal = Annual mortgage constant The constant tells you the total principal and interest payments per year per $100 of debt. (Before the widespread availability of simple financial calculators and computer spreadsheet templates, figures obtained from annual mortgage constant tables were the only quick and reliable way to calculate mortgage payments.) How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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