Definitions for "Mortgage Constant"
Ratio of annual mortgage payments divided by the initial principal of the mortgage. Applies only to loans involving constant payment.
The relationship annual mortgage requirements and the initial mortgage loan principal, expressed as a decimal or percentage, for level payment mortgage loans. Used for converting debt service into mortgage loan value.
The capitalization rate for debt; the ratio of the annual debt service to the principal amount of the mortgage loan.
The ratio of an amortizing mortgage payment to the outstanding mortgage balance.