The Real Estate Encyclopedia
What Is A Level-payment Mortgage?
Category - Real Estate Information Sources - General Real Estate Information

A mortgage scheduled to be repaid in equal periodic payments that include both principal and interest is a level-payment mortgage.  Payments are credited first against interest on the declining principal balance, so the amount of money credited to principal gradually increases, while that credited to interest gradually decreases.  Under most conventional, FHA and VA loans, the mortgage payments include taxes and insurance in addition to principal and interest. 



References
 
Category(s)
Mortgage Questions - Mortgage Loans FAQ's
Home Buying Questions - General Home Buying FAQ's
Real Estate Information Sources - General Real Estate Information
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