A ratio between the annual amount of debt servicing to the total value of a loan. This is only applicable to mortgages that pay a fixed rate of interest. This constant may also be used to calculate the highest loan value that can be received on a property, given the income that is generated by that property - regardless of whether it is a residential or a commercial property.
Related information about annual mortgage constant:
- Annual Mortgage Constant: Definition from Answers.com
Amount of annual debt service compared to the principal; also expressed as a dollar amount. The formula is: Previous: An.
- annual mortgage constant Definition | Business Dictionaries from ...
Business Definition for: annual mortgage constant. Dictionary of ... Note: The annual mortgage constant must exceed the interest rate for amortization to occur.
- annual mortgage constant - Financial Dictionary - The Free Dictionary
The amount of annual debt service compared to the principal amount of a loan and then expressed as a dollar amount. Annual debt service / Mortgage principal ...
- HP 12C steps to calculate Annual Mortgage Constant f REG ... - iSites
Calculating the Mortgage Constant. Loan to Value Ratio: 75%. Mortgage Rate: 7.5%. Term of Loan: 20 years-paid monthly. Required Equity Yield Rate: 10% ...
- What is annual mortgage constant? definition and meaning
Definition of annual mortgage constant: A ratio between the annual amount of debt servicing to the total value of a loan. This is only applicable to mortgages that ...
- Band of Investment - Real Estate Valuation
The Financing component is the Annual Mortgage Constant multiplied by the Loan to ... First, we must calculate the Annual Mortgage Constant or look it up in a ...
- annual mortgage constant - Business Definition
annual mortgage constant definition: Annual mortgage payments as a proportion of the initial principal amount of the mortgage....
- Annual Mortgage Loan Constant - Gold Standard Document
And that is the annual mortgage constant (hence the name “constant”). With just a basic calculator, you can learn the annual constant with this formula: Annual ...