loan constant

Loan Constant

The cash flow required to pay the principal and interest on a loan as a percentage of the original principal. This is expressed by dividing the monthly loan payment by the amount of original principal. While less useful now, before financial calculators came to prominence loan constant tables were developed in real estate finance to amortize home loans more easily. Multiplying by a percentage (set in the table) was seen as an easier way to determine a monthly payment.

loan constant

See constant.

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References in periodicals archive ?
Standard & Poor's determined that 2000 debt service coverage based on net cash flow (NCF) and a market-rate loan constant was 2.
Amortization and loan constant is one of the most important, and one that nursing home owners often fail to fully consider.
The loan structure was chosen because of the competitive interest rate, the low combined loan constant, prepayment flexibility, funds available to finance capital improvements, and certainty of execution," said Erland.
75% loan constant, has increased steadily since issuance, and stood at 2.
interest Loan Constant The total,amount paid each month in
Fitch has downgraded the credit assessment on this loan to below investment grade based on the current loan balance and a hypothetical stressed loan constant.
Standard & Poor's determined that debt service coverage, based on net cash flow (NCF) and a market-rate loan constant, has remained stable since issuance and stood at 1.
Standard & Poor's determined that the debt service coverage based on net cash flow (NCF) and a market-rate loan constant is 2.
25% loan constant, a beginning loan-to-value (LTV) ratio of 56.
66x for 2002, which was calculated pursuant to the covenants in the loan documents, including a loan constant of 14.