Level Payment
Definition
- The method of repayment where periodical payments of principal and interest are made in such a way that the payments remain constant in amount.
Synonyms
fixed payment, static payment
Related Terms and Acronyms
- Fixed Annuity — Definition,
- An annuity that makes fixed payments to the annuitant with guarantees for earnings and principal.
- Fixed Instalment — Definition,
- Periodic (usually monthly) payment on a loan whose sum does not vary.
- Fixed Premium — Definition,
- Insurance or annuity premiums that stay level for a specific period of time.
- Fixed Rate Mortgage (FRM) — Acronym, Very Important,
- A loan in which the interest rate and payments remain the same for the entire life of the loan. The interest rate and payment amounts are set at the time of loan origination.
- Flat Fee — Definition,
- A fixed charge that a broker requests instead of a commission.
- Interest Only Payments — Definition,
- A payment plan where only the interest is paid off.
- Level-Premium Insurance — Definition,
- Insurance where the premiums the policyholder pays are guaranteed to remain the same for an agreed upon period of time.
- Simple Interest (SI) — Acronym, Important,
- Interest computed only on the principal balance, without compounding.
- Simple Interest Loan — Definition,
- A method of allocating the monthly payment between interest and principal. The interest charged is determined by the unpaid principal balance on the loan, the interest rate, and the number of days since the last payment. The rest of the payment goes to the principal. Making early payments or additional payments reduces the loan's principal and cuts the total interest paid over the life of the loan.
- Time Deposit — Definition,
- A type of deposit account with a stated maturity at which time the account reverts to another type of account or is "rolled over" for another fixed period of time.
- Variable Rate — Definition,
- A floating percentage value that fluctuates based on certain conditions.
