FastPass Real Estate Exam Course

Real Estate Licensing and Marketing Courses in British Columbia (B.C.)
real estate math constant payment mortgages
3 May 2017

What is a Constant Payment Loan?

A constant payment loan is one where the monthly payment is a fixed throughout the duration of the loan.

Each payment pays off a portion of interest and principle.

At the beginning of the loan, interest makes up the major portion of the payment.

As the loan is paid off, a larger & larger portion of the payment goes towards reducing the principle balance.