What is the mortgae constant factor in a loan, how and why does it change depending on the loan amount/term

In Buying Property - Asked by Resul R. - Nov 30, 2009
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Gregory G.
San Francisco, CA

Sometimes there is a need to estimate a
mortgage’s unpaid balance as of a certain date. For
example, assume a $50,000 loan was made for 25
years at an 8 percent rate. The appropriate mortgage
constant is 0.0937 and the annual payment is
Loan amount ´ Mortgage constant = Annual payment
$50,000 ´ .0937 = $4,685
Gregory Garver - Commercial Real Estate Broker
Broker License# 01716531
Web Reference: http://www.gregorygarver.com

Dec 3, 2009
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