mortgage constant

mortgage constant definition - business

mortgage constant

The ratio of annual debt service (payment of principal and interest) to the outstanding principal amount of a mortgage. The mortgage constant is the lender's capitalization rate on a mortgage loan.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.