This refers to the amortization term-based factor and interest rate whose reciprocal is the mortgage constant, which is the percentage of the original loan principal amount. When multiplied by the loan principal amount, this will give you the annual constant payment of both the principal and the interest.
Annuity Factor
This refers to the amortization term-based factor and interest rate whose reciprocal is the mortgage constant, which is the percentage of the original loan principal amount. When multiplied by the loan principal amount, this will give you the annual constant payment of both the principal and the interest.
