The Real Estate Encyclopedia
What Is A Level-payment Mortgage?
Category - Mortgage Questions - Mortgage Loans FAQ's

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. 

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