Also referred to as the mortgage constant formula, is the percentage of cash flow needed to make mortgage payments. It is calculated by dividing the monthly loan payment (the sum of the interest plus the principal) by the remaining principal on the loan.
Related information about loan constant:
- Loan Constant Definition | Investopedia
The loan constant, when multiplied by the original loan principal, gives the dollar amount ... The loan constant can be used to compare the true cost of borrowing.
- How to Calculate the Loan Constant (Cost of Capital)
Jun 15, 2009 ... The cost of capital for a property is called the Loan Constant or Mortgage Constant. In this article, we will discuss how to calculate this metric.
- Loan Constant - Financial Dictionary - The Free Dictionary
The cash flow required to pay the principal and interest on a loan as a percentage of the original principal. This is expressed by dividing the monthly loan ...
- Constant Chart - Fantini and Gorga
annual loan constant percent for a loan with monthly level debt service loan payments. Example: $1,000,000 loan, 6% interest rate, 30 year amortization results ...
- Loan Constant: Definition from Answers.com
Loan Constant The required annual cash flow needed to service both the principal and interest upon a loan obligation.
- What is loan constant? definition and meaning
Definition of loan constant: Required cash flow needed annually that will service both the interest and principal on a loan obligation. The value is calculated as a ...
- What Is a Loan Constant?
A loan constant is the total amount paid every year to service a loan. This amount can be used to express the amount of payments made annually in the form of a ...
- The Loan Constant - A Old "New" Way of Looking at Debt
How do you know which loan to pay off first? Forget about the interest rate and concentrate on the loan constant.