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What Is A Level-payment Mortgage?
Category - Home Buying FAQ's - Financing

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)
Home Buying FAQ's - Financing
Home Buying FAQ's - General Home Buying
Real Estate Information - General Real Estate Information
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