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level-payment mortgage

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level-payment mortgage
A mortgage note with periodic payments in equal amounts.Usually, a fully amortizing mortgage, with each payment including some portion for principal reduction and some portion for currently accrued interest, so that at the end of the agreed-upon term the note will be paid in full.The concept is not restricted to fully amortizing mortgages, though, and may include payments made according to an amortization schedule but with the entire balance due at an earlier date,or simply payments in a fixed amount with the entire balance due in 3,5,or 10 years,or whatever the parties agree to.


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